Adidas Sold Reebok to Authentic Brands Group for AU$3.4 Billion

The deal is expected to close during the early 2022

Adidas, the three-stripes, just said goodbye to Reebok, as it sold it off to Authentic Brands Group for a whopping AU$3.4 billion. According to the German sports giant, Reebok was up for sale earlier in 2021.

 

Adidas gives up Reebok

The Reebok sale was a big push for the brand. Adidas would get great relief from giving the brand up. Back in a 2020 report, Adidas stated, “As part of the development of our new five-year strategy, we have assessed strategic alternatives for Reebok and decided to begin a formal process aimed at divesting the brand.”

 

 

Adidas first purchased Reebok for AU$5.17 billion in 2006. Based on reports, investors have not been very happy with the success of the brand and its progress due to a lack of profits.

Kaspar Rorsted, the CEO of Adidas stated, “After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other.”

 

Earlier, Reebok has been in competition with PUMA and Nike in the sportswear market. However, it was unable to stand out and the investors were not particularly happy with the brand’s performance. However, until 2020, Reebok was standing out in some areas, especially CrossFit.

The Authentic Brands Group currently manages around 30 brands. However, none of these brands are like Reebok. For instance, in its portfolio, brands like Brooks Brothers and Forever 21 are common. Other than that, the group also manages some footwear companies that include Tretorn, Frye, and Airwalk.

 

So, the purchase of Reebok would be an attempt for Authentic Brands Group to enter the world of sportswear.

For now, it looks like Reebok has been set on the right track to progress. After all, the brand had some notable collaborations and reported new in-house designs.

 

However, the future of the brand is now in the hands of Authentic Brands Group. Since the group does not have a sports brand under its portfolio specifically makes things interesting.

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