Adidas sells Reebok brand to Authentic Brands Group in $2.5 billion deal

The Reebok deal, which will be closed by the first quarter of 2022, marks an important milestone in the growth of Authentic Brands Group, the company’s Chief Executive Officer Jamie Salter said in a statement.

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New Delhi: Adidas AG is all set to sell Reebok to Authentic Brands Group Inc. in a deal that could be at about 2.1 billion euros ($2.5 billion). The deal will help US-based Authentic Brands to include another well-known brand into its portfolio of consumer companies. 

According to a report by Bloomberg, the deal, which will be closed by the first quarter of 2022, marks an important milestone in the growth of Authentic Brands Group, the company’s Chief Executive Officer Jamie Salter said in a statement. 

“We are committed to preserving Reebok’s integrity, innovation and values -- including its presence in bricks and mortar," he was quoted as saying. A majority part of the deal will be closed in cash while the remaining is expected to be received by Adidas as deferred and contingent consideration. The cash will mostly be used to pay the company’s shareholders. 

Adidas had recently put Reebook on sale after failing to revive the brand for the past 10 years. On the other side, Authentic Brands, in the past few years, has acquired several consumer brands such as Barneys New York and Brooks Brothers. In total, the firm has acquired over 30 brands and is now gearing up for its initial public offering in the US stock exchange. Also Read: Instagram apologises for deleting film poster depicting lactating nipple

Adidas reportedly said that the sale of the Reebok brand won’t the financial outlook for the ongoing fiscal or long-term targets of the sporting consumer products brand. Also Read: Public Provident Fund: Invest Rs 34 every day in PPF to get Rs 18 lakh, here’s how