Adidas found a buyer for the Reebok brand a few months later. Reuters reported that ABG Group will acquire the project for $2.5 billion. That’s less than what Adidas paid Reebok for several years ago.
Adidas sells Reebok for $2.5 billion.
as he knows ReutersAnd Adidas sells Reebok to US-based ABG Group – The Originals Brands Group. She owns more than 30 luxury brands of clothing and cosmetics, including Airwalk, Volcom, Sports Illustrated or Forever 21. The decision was made after six months of searching for a buyer – Adidas announced its intention to phase out the well-known brand in February 2021.
ABG will pay $2.5 billion to Reebok. (about 2.1 billion euros). As Reuters confirms, Adidas is selling the famous brand because it did not meet the expectations placed in it. What is more, The amount of the deal is even lower when Adidas acquired Reebok – the German company paid $3.8 billion in 2006. , which is 1.3 billion dollars. Over the sale amount now.
As ABG emphasized in a press release on the matter, the company wants to “preserve the innovation and values of Reebok.” The group also claims that this is a “milestone” in its development. Reebok was acquired by ABG just before its debut on the stock exchange – in July, the company filed for IPO documents in the United States.
Previously, Adidas also sold other brands for about 400 million euros, which were bought with Reebok in 2006: Rockport, CCM Hockey and Greg Norman.
As Reuters reports, Reebok became profitable after new adidas CEO Kasper Rorsted launched a redemption plan for the brand in 2016. In the first half of 2021, Reebok’s sales increased to €823 million, compared to €600 million in the previous year. This allowed the brand to make a profit of 68 million euros compared to a loss of 69 million euros the previous year.
Adidas says Reebok sales will have no impact on its 2021 financial performance outlook.
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