The German sports group "Adidas" revealed the conclusion of an agreement worth 2.1 billion euros to sell its "Reebok" brand to the American company "Authentic Brands Group" (ABG).
The deal is expected to be completed in the first quarter of 2022, with the bulk of the amount to be paid in cash, after the approval of the relevant authorities, according to what the German group explained in a statement.
In early August, the group revealed the finalization of the sale of its subsidiary brand, which has been out of business since early 2021.
“We have always valued Reebok and are grateful for the contributions the brand and its teams make to our company,” Kasper Rorsted, president of adidas, said in a statement.
He pointed out that the group intends to focus on promoting its "Adidas" brand.
"It´s an honor to carry on the Reebok legacy," said Jamie Salter, founding president of APG, whose brands include JC Penney, Forever 21 and Brooks Brothers.
Adidas bought Reebok in 2006 for 3.1 billion euros, in an effort to get ahead of its most prominent competitor, Nike.
She has always had problems with her brand and from time to time there were rumors that it might be sold. The mark was only worth 803 million euros at the end of 2020.
Reebok´s turnover increased by only 2% in 2019 to 1.75 billion euros, a small part of Adidas´ total business, estimated at 23.6 billion euros.
The sale of Reebok will not affect Adidas´ financial outlook for the current year, according to the German group.
The company raised its annual forecast in early August based on good results in the second quarter of the year, despite supply problems, especially in Vietnam.
Between April and June, the group´s net profit amounted to 397 million euros, compared to a loss of 295 million a year earlier, in the midst of the first wave of Covid-19.
The group, headquartered in Herzogenaurach (south), aspires to increase sales by 20 percent annually and achieve net revenues of between 1.4 and 1.5 billion euros.
