Adidas will sell the Reebok brand to American brand development, marketing and entertainment company Authentic Brands Group (ABG) following a decision earlier this year to focus on its core brand.
Reebok, which was acquired by the German sportswear giant for $3.8bn (£2.1bn) in 2006, struggled to match the momentum of other sporting brands despite an increased interest in athleisure over the pandemic.
Reebok currently operates in 80 countries with 70% of its business coming from outside North America.
The acquisition of Reebok by ABG is expected to close in the first quarter of 2022.
Although Adidas chief executive Kasper Rorsted had included Reebok in his turnaround strategy after taking the top job in 2016, the decision was made in February this year to sell the brand, with Rorsted saying: “After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realise their growth potential independently of each other.”
Adidas has already sold the Rockport, CCM Hockey and Greg Norman brands for €400m (£400m), all of which were included in the original Reebok acquisition in 2006.
ABG owns more than 30 consumer brands that are sold in more than 6,300 stores. Its brands include Sports Illustrated and Juicy Couture, as well as bankrupt brands such as Brooks Brothers, Barneys and Forever 21. The company is reportedly preparing for an IPO in the coming months and was in the running to acquire Topshop prior to the brand being snapped up by Asos.
ABG founder, chair and CEO Jamie Salter said: “We’ve had our sights set on Reebok for many years and we’re excited to finally bring this iconic brand into the fold. Reebok not only holds a special place in the minds and hearts of consumers around the world, but the brand also has expansive global distribution.”
“Adidas has been an incredible steward of the Reebok brand and we look forward to working with the Reebok team to continue their great work and further its position as one of the world’s leading consumer brands.”
Rorsted added: ”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.
”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.”
Reebok’s headquarters will remain in Boston, US, while the brand’s president Matt O’Toole and workforce will stay with the brand throughout the transition to new ownership.
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