After putting Reebok on the market late last year, Authentic Brand Group (ABG) has agreed to purchase Reebok from adidas for $2.5 billion adidas announced Thursday.
ABG’s brand portfolio has 35 brands under their umbrella according to their website which contains the likes of SHAQ, Forever 21, Nautica, Tretorn, and more.
“It’s an honor to be entrusted with carrying Reebok’s legacy forward,” stated ABG founder, chairman, and CEO Jamie Salter. “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.”
adidas purchased Reebok in 2006 for $3.8 billion but decided to shed Reebok from its future plans with a new growth strategy they call “Own the Game” until 2025 which strategically focuses on adidas’ brand credibility, consumer experience, and sustainability.
“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,” said Adidas CEO Kasper Rorsted. “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.”
The sale between adidas and ABG is expected to close in Q1 of 2022 and is a mostly cash deal worth about €2.1 billion/$2.5 billion.
