Reebok Sold by adidas to Authentic Brands Group for $2.5 Billion
After announcing an imminent parting of ways, adidas have agreed to sell Reebok to Authentic Brands Group Inc. (ABG) for $2.5 billion. The deal is expected to close during the first quarter of 2022 as part of the Three Stripes’ recently announced five-year strategy.
Reebok were acquired by adidas in 2006 for $3.8 billion. However, Reuters’ banking source had estimated Boston-based Reebok is currently worth about €1 billion EUR ($1.2 billion).
Based in New York City, Authentic Brands Group owns over 30 brands, including the likes of Airwalk, Volcom, Barneys, Nautica, and Brooks Brothers.
‘It’s an honour to be entrusted with carrying Reebok’s legacy forward,’ said Jamie Salter, Founder, Chairman and CEO of ABG.
‘This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand’s success.’
It will be interesting to see which direction Reebok will head in following the new acquisition. However, adidas’ CEO Kasper Rørsted believes the brand is in good hands.
‘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,’ he said in a statement.
‘With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders.’