Adidas announced Thursday that it has agreed to sell Reebok to the American company Authentic Brands Group (ABG) for 2.1 billion euros.
The sum will be largely paid in cash, and the transaction should be concluded in the first quarter of 2022, after the approval of the relevant authorities, the German group said in a statement.
In early August, the group announced it was in the process of selling its subsidiary, which has already been out of the business since 2021.
In a statement, Adidas president Kasper Rorsted said that the brand and its teams have always been appreciated by Adidas.
Now, the company will focus on solidifying the Adidas brand, he explained.
“It is an honor to be trusted with the continuation of Reebok’s legacy,” said Jamie Salter, founder and president of ABG, which manages JCPenney, Forever21, and Brooks Brothers.
In 2006, Adidas acquired Reebok for 3.1 billion euros in order to get closer to its great American rival Nike.
In the years following its acquisition by the German group, Reebok specialized in women’s sportswear, has been regarded as a problem child within the equipment manufacturer, periodically fueling rumors of a possible sale.
In late 2020, the brand was worth only 803 million euros on the group’s balance sheet.
Reebok’s sales increased by 2% in 2019 to 1.75 billion euros, a negligible percentage of the 23.6 billion euros of the entire Adidas Group’s sales.
Adidas said the sale of Reebok will not affect its financial forecasts for the year.
In spite of supply difficulties, especially in Vietnam, and a good second quarter, the equipment manufacturer raised its annual forecasts in early August.
The group’s net profit from April to June was 397 million euros, compared to a loss of 295 million euros a year earlier, in the middle of the first wave of Covid-19
The group is now targeting annual sales growth of 20% and a net profit of between 1.4 and 1.5 billion euros.