The amount is to be paid by the American company Authentic Brands Group, mostly in cash, and the transaction should be concluded in the first quarter of 2022, after its approval by the competent authorities, the German group states in a statement.
In February 2021, the German sports equipment manufacturer Adidas AG announced that it had decided to sell one of its best-known brands, 15 years after it bought the American sportswear manufacturer in order to better compete with rival Nike Inc.
Adidas said it had launched a formal separation process from Reebok as part of a five-year strategy to be unveiled on March 10, when the company’s 2020 announcements and results would be released. A banking source estimated that The Reebok brand could be valued at about 1 billion euros (about 1.2 billion dollars), writes Reuters.
“Reebok and Adidas will be better able to realize their growth potential independently of each other,” said Adidas CEO Kasper Rorsted.
Adidas took over Reebok in 2006 for $ 3.8 billion, but the brand’s poor performance has led investors to repeatedly ask the German group to sell the Reebok brand. In the third quarter of last year, Reebok sales fell 7% to 403 million euros, after falling 44% in the second quarter.
Adidas options include turning Reebok into an independent company or selling the brand to a private equity fund, another major sporting goods retailer, or a multi-brand player such as VF Corp., which owns the Timberland and North brands. Do what.
In 2019, Adidas downgraded Reebok’s book value by almost half compared to 2018 to 842 million euros ($ 1.02 billion).
Reebok’s net sales fell 7% in the third quarter to 403 million euros ($ 489.40 million), after declining by up to 44% in the previous quarter.
Recent collaborations with celebrities such as Cardi B and a recent focus on women’s clothing have improved the brand’s position, said Jessica Ramirez, a retail analyst at Jane Hali & Associates.
“Reebok will not be too much of a burden for whoever takes it, if there is a sale,” Ramirez added.
Adidas announced in early November that it expects a drop in total sales in the last three months of the year, as the reintroduction of quarantines in Europe is likely to offset the positive effect of the return to growth in China and strong demand for running equipment and products by singer Beyonce.
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