The German sportswear company confirmed today it has come to an agreement with Authentic Brands Group (ABG) to sell Reebok for up to €2.1 billion ($2.5 billion) with the majority to be paid in cash at the closing of the transaction. Adidas acquired Reebok in 2006 for $3.8 billion.
This announcement comes four months after Adidas unveiled it has begun the formal process of selling Reebok as part of its “Own the Game” strategy, which is focused on significantly increasing the brand’s sales and profitability by 2025.
“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,” said Kasper Rorsted, CEO of Adidas AG.
Some of the other footwear brands that Authentic Brands Group currently owns include Airwalk and Tretorn.
Speculation about Adidas selling Reebok dates back to 2015 after receiving pressure from investors to do so as the brand was not profitable for the Three Stripes during that year but the demands were shut down by Rorsted.
The transaction is expected to be completed sometime in the first quarter of 2022.