German sportswear company Adidas has announced the sale of Reebok to Authentic Brands Group for up to €2.1 billion or roughly $2.5 billion.
Adidas bought Reebok back in 2006, and the acquisition included the Rockport, CCM Hockey and Greg Norman brands, which Adidas later divested.
Jamie Salter, Founder, Chairman, and CEO of Authentic Brands Group stated that he looks forward to “working closely with the Reebok team to build on the brand’s success.”
How much did Adidas buy Reebok for?
Adidas bought Reebok back in 2006 for $3.8 billion.
The company bought Reebok as a way to compete with Nike, though according to Reuters “its sluggish performance prompted repeated calls from investors to sell the U.S. and Canada focused brand.”
Following the announcement of the sale to Authentic Brands, Kasper Rorsted, CEO of adidas AG said:
“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.”
Adidas sells Reebok to Authentic Brands
Adidas announced on August 12th that they will be selling Reebok to Authentic Brands Group “for a total consideration of up to € 2.1 billion.”
According to the press release issued by Adidas, the majority will be paid in cash and the remained “comprised of deferred and contingent consideration.”
Jamie Salter, founder, chairman and CEO of Authentic Brands Group 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. We are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar.”