Monday 25 / November / 2024
Berlin: German sportswear firm Adidas said on Thursday it will sell the brand Reebok to a US company, in a deal worth €2.1 billion ($2.5 billion).
Authentic Brands Group (ABG) will be Reebok's new owner, after Adidas failed to lift the fortunes of a brand it acquired in 2006.
The large US firm owns a number of brands including fashion retailers JCPenney, Forever21 and Brooks Brothers, as well as the magazine Sports Illustrated.
"Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company," Adidas CEO Kasper Rorsted said in a press release.
"With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success," Rorsted said.
A struggling brand
ABG chief Jamie Salter said it was an "honor" to carry Reebok's legacy forward. "We look forward to working closely with the Reebok team to build on the brand's success," Salter said.
Boston-based Reebok was acquired by Adidas 15 years ago for €3.1 billion ($3.8 billion), as the German sports giant sought to take on US rival Nike.
Despite high-profile collaborations with the likes of Victoria Beckham, Cardi B and Ariana Grande in recent years, the brand struggled.
While Adidas said the sale of Reebok would have "no impact" on its financial outlook in the coming year, the company saw its stock price rise 1.6% after announcing the sale.
