Adidas has entered into a binding agreement to sell the Reebok brand to Authentic Brands Group (ABG).
The deal is expected to cost up to €2.1 billion (US$2.5 million), with the majority of the money paid up front and the balance made up of delayed and contingent considerations.
“Reebok has become an important part of Adidas, and we are thankful for the contributions the brand and its employees have made to the company,” said Kasper Rorsted, CEO of Adidas. “We think that with this change in ownership, the Reebok brand will be well-positioned for long-term success.”
Adidas acquired Reebok in 2006, but over recent years the brand has had to implement a turnaround strategy to boost growth. The firm is now set to offload the popular sportswear firm, with ABG deemed an ideal suitor. Jamie Salter, chairman and CEO of ABG, commented: “It’s an honour to be entrusted with carrying Reebo’s legacy forward”