Adidas said it’s selling Reebok to Authentic Brands Group “for a total consideration of up to 2.1 billion euros.”
The German activewear giant said ABG would pay the majority in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration.
The deal is expected to close in the first quarter of 2022.
Adidas said it intends to share the majority of the cash proceeds with its shareholders.
“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,” commented Kasper Rorsted, chief executive officer of Adidas AG. “With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success.
ABG had been considered the frontrunner for Reebok.
“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,” said Jamie Salter, founder, chairman and CEO of ABG. “We look forward to working closely with the Reebok team to build on the brand’s success.”
ABG’s holdings include everything from Barneys New York and Brooks Brothers to Forever 21. On the activewear side, ABG counts Spyder, Greg Norman, Prince, Above the Rim, Hind and Volcom as among its properties. It also owns Sports Illustrated as well as the IP for Muhammad Ali and Julius Erving.
Adidas acquired Reebok in 2006 for $3.8 billion, which at the time included the Rockport, CCM Hockey and Greg Norman brands. Adidas later offloaded those brands.
Reebok has long been overshadowed by its parent company and has been a perennial underperformer. Although results have improved in the past couple of years, the brand has struggled more than its parent during the pandemic.
Adidas ultimately decided to focus on its flagship brand and disclosed plans to sell Reebok last February.
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