Adidas is selling Reebok for up to €2.1bn to US-based celebrity and clothing licensing group Authentic Brands, drawing a line under the German sportswear maker’s ill-fated acquisition more than 15 years ago.
Net proceeds from the sale will be roughly €325m lower than the original price tag because of stranded costs around the divestment.
Adidas paid $3.8bn for Reebok in 2005 as it sought to take on rival Nike in its home market but the brand was dogged by lacklustre sales and losses.
“While Adidas did manage to restore Reebok to profitability it was far less successful in building a brand that was able to steal share and capture the hearts and minds of consumers,” said Neil Saunders, managing director of GlobalData, a data analytics and consulting company.
Source: Financial Times
By Olaf Storbeck
