According to Markets Insider, Adidas, the leading sports products manufacturer, announced its intention to sell the Reebok brand. The business is expected to be sold for $2.5 billion. The deal is likely to be closed in the first quarter of 2022.
Adidas purchased Reebok for $3.8 billion in 2006 to take on Nike. The company now has to sell the struggling brand for just $2.5 billion (€2,1 billion). Adidas has recently reached a deal with Authentic Brands Group that owns Brooks Brothers and Forever 21 to offload Reebok.
Adidas announced its intention to sell Reebok in February 2020. The sportswear manufacturer decided to focus on further strengthening the leading positions of Adidas in the global sporting goods market.
For years, the company endeavoured to bring Reebok back to life, though in vain. Adidas could not even make use of positioning Reebok as an attractive brand for athletes. Another unsuccessful attempt to revive the business was a collaboration with UFC and Crossfit. “Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success,” Adidas CEO Kasper Rorsted said.
Adidas hopes that the sale of Reebok will have no impact on its financial outlook. When the deal is closed, the firm is expected to allocate the lion's share of the funds to its shareholders.
