Adidas sells Reebok to a US group for 2.1 billion euros
The sale of Reebok will not affect Adidas' financial outlook for the current year.
AFP
The German sports group "Adidas" revealed the conclusion of an agreement worth 2.1 billion euros to sell its "Reebok" brand to the American company "Authentic Brands Group" (ABG).
The deal is expected to be completed in the first quarter of 2022, with the bulk of the amount to be paid in cash, after the approval of the relevant authorities, according to the German group in a statement.
In early August, the group revealed the finalization of the sale of its subsidiary brand, which has been out of business since early 2021.
"We have always valued Reebok and are grateful for the contributions the brand and its teams make to our company," adidas president Kasper Rorsted said in a statement.
He pointed out that the group intends to focus on promoting its "Adidas" brand.
"It's an honor to carry on the Reebok legacy," said Jamie Salter, founding president of APG, which operates among its brands JC Penney, Forever 21 and Brooks Brothers.
Adidas bought Reebok in 2006 for 3.1 billion euros, in an effort to gain an advantage over its most prominent competitor, Nike.
Adidas has always had problems with its brand, and from time to time rumors circulated that it might be sold.
The brand was worth only 803 million euros at the end of 2020. Reebok's turnover rose in 2019 to 1.75 billion euros, a small part of Adidas' total business estimated at 23.6 billion euros.
The sale of Reebok will not affect Adidas' financial outlook for the current year, according to the German group.
The company raised its annual forecast in early August based on good results in the second quarter of the year, despite supply problems, especially in Vietnam.
Between April and June, the group's net profit amounted to 397 million euros, compared to a loss of 295 million a year earlier, in the midst of the first wave of "Covid-19".
The group, headquartered in Herzogenaurach (south), aspires to increase sales by 20% annually, and achieve net revenues of between 1.4 billion and 1.5 billion euros.
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