Adidas Finds Buyer for Underperforming Reebok
German sportswear manufacturer Adidas sells its underperforming subsidiary brand Reebok to the Authentic Brands Group (ABG).
That company already owns clothing brands Forever 21 and Juicy Couture, as well as rights to images of American icons Elvis Presley, Muhammad Ali and Marilyn Monroe.
Adidas formally put Reebok up for sale early this year after more than a decade of trying to get Reebok’s sales up and running.
The deal is worth about 2.5 billion dollars. However, part of the agreed price is still subject to several conditions, which means that the exact amount has not yet been determined.
The Herzogenaurach company bought Reebok in 2006 for $3.8 billion to better compete with American arch-rival Nike. But that plan failed, and Reebok’s performance was sorely disappointing.
Authentic Brands, which recently filed for a listing in the United States, has already incorporated dozens of brands and sees opportunities in Reebok.