adidas Announce Plans to Sell Reebok as Part of Five-Year Strategy
Confirming reports from late 2020, adidas have announced plans to formally divest from Reebok as part of a new five-year strategy. The German sportswear giant will refer to Reebok as a ‘discontinued operation’ from the first quarter of 2021, with further details about the plan to be revealed alongside the brand’s 2020 yearly results on March 10.
‘Reebok and adidas will be able to significantly better realise their growth potential independently of each other,’ said adidas CEO Kaspar Rørsted in a statement via Reuters.
Reebok were acquired by adidas in 2006 for $3.8 billion. However, Reuters’ banking source estimates Boston-based Reebok is currently worth about €1 billion EUR ($1.2 billion USD).
Rumours of the parting of ways emerged after the release of adidas’ Q2 2020 earnings, which revealed Reebok-generated revenue was down 42 per cent, with sales falling as much as 44 per cent.
It is being reported that Rørsted, is looking to sell Reebok for $2.4 billion, with private equity firms Permira and Triton, as well as VF Corp, rumoured to be suitors.
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