adidas Could Sell Off Subsidiary Reebok in 2021
They rocked the sneakersphere when they acquired Reebok back in 2006, and now adidas are considering whether to sell the brand, less than 15 years on. Part of the development of the German sports company’s new five-year strategy, the final decision will be announced on March 10, 2021.
Reebok was acquired for $3.8 billion, and adidas have returned the division to profitability and growth in recent years. Consequently, private-equity firms Permira and Triton have reportedly looked at acquiring Reebok, according to the Financial Times. Meanwhile, German publication Manager Magazin reported that VF Corp – owners of Supreme – were also interested.
Since 2006, adidas CEO Kasper Rørsted has worked to fix Reebok’s long-sluggish performance, including allowing some licensing deals to expire. After Reebok finally regained profitability in early 2019, Rørsted said he wanted to generate sales growth with new footwear lines like the CrossFit Nano and the FloatRide Run. He has compared overseeing adidas and Reebok to being like a parent who loves both his children equally.
Manager Magazin claims that Rørsted had hoped for about 2 billion euros ($2.4 billion) from the sale of Reebok before the pandemic, but that figure has likely softened.
Watch this space, sneakerheads!