Adidas has agreed to sell Reebok to the Authentic Brands Group (ABG). The deal is set at € 2.1 billion. Adidas bought Reebok in 2006 and the acquisition included the Rockport, CCM Hockey, and Greg Norman brands, which Adidas later divested for a total consideration of € 0.4 billion. However, in 2016, Reebok initiated a turnaround plan called “Muscle Up,” through which the brand improved its growth and profitability prospects significantly. With this move, Reebok became a famous brand globally.
In March 2021, Adidas presented its 2025 “Own the Game” strategy to increase sales and profitability and gain market share by 2025.
During the strategy formulation process, Adidas assessed strategic alternatives for Reebok with a focus on ensuring both Adidas and Reebok would be well-positioned for sustainable growth. The sale of Reebok has no impact on Adidas’s financial outlook for the current year or the company’s 2025 financial ambition that was announced as part of its Own the Game strategy in March of 2021.
Jamie Salter, Founder, Chairman, and CEO of ABG, commented, “It’s an honor to be entrusted with carrying Reebok’s legacy forward. 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.”
Authentic Brands Group LLC is an American brand management company headquartered in New York City. Its holdings include various apparel, athletics, and entertainment brands, for which it partners with other companies to license and merchandise.
