Adidas found a buyer for the Reebok brand after a few months. It will be taken over by the ABG group for $ 2.5 billion, reports Reuters. This is less than Adidas paid for Reebok several years ago.
Adidas sells Reebok for $ 2.5 billion.
As he informs Reuters, Adidas sells Reebok to the American ABG group – Authentic Brands Group. It owns over 30 luxury, clothing and cosmetic brands, including Airwalk, Volcom, Sports Illustrated magazine or the Forever 21 chain of stores. The decision was made after six months of searching for a buyer – Adidas announced its intention to get rid of the well-known brand in February 2021.
ABG to pay $ 2.5 billion for Reebok. (approx. EUR 2.1 billion). As Reuters emphasizes, Adidas sells the famous brand because it did not meet the expectations placed in it. What’s more, the amount of the transaction is lower than that when Adidas took over Reebok – the German company paid 3.8 billion dollars in 2006., which is 1.3 billion dollars. more than the sale amount is now.
As ABG emphasized in a press release on the subject, the company wants to “preserve the innovation and values of Reebok.” The group also claims that this is a “milestone” in its development. ABG takes over Reebok just before its stock exchange debut – in July, the company filed IPO documents in the US.
Previously, Adidas also sold other brands for around 400 million euros, acquired with Reebok in 2006: Rockport, CCM Hockey and Greg Norman.
See also: There was no Adidas, Nike and Primark. Here are 10 famous brands that used to be called differently
As Reuters reminds, Reebok became profitable after Adidas’ new CEO Kasper Rorsted launched a recovery plan for the brand in 2016. In the first half of 2021, Reebok sales increased to EUR 823 million from EUR 600 million a year earlier. This allowed the brand to generate a profit of EUR 68 million compared to a loss of EUR 69 million a year earlier.
Adidas says Reebok sales will have no impact on the 2021 financial performance outlook.
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