Adidas is selling embattled apparel brand Reebok for $2.5 billion to Authentic Brands, which intends to go public soon.
CHRISTOF STACHE/AFP via Getty ImagesAuthentic Brands Group has agreed to buy Reebok from Adidas for up to 2.1 billion euros, or $2.5 billion.
Terms of the transaction call for Authentic Brands to pay the majority of the price in cash. The deal also includes deferred and contingent consideration, a statement from Adidas (ticker: ADS) said. The transaction is expected to close in the first quarter of 2022.
Adidas had acquired Reebok for $3.8 billion in 2006 to help it compete with rival Nike (NKE). That deal included Rockport, CCM Hockey, and Greg Norman brands, which Adidas later sold for a total of 400 million euros, or $469.4 million. Reebok struggled, with activist Adidas investors repeatedly calling for the sale of the sneaker brand.
In February, Adidas said it would sell Reebok as it sought to focus on strengthening the position of its own brand in the global sporting-goods market.
“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,” said Adidas CEO Kasper Rorsted in a statement.
Reebok is known for launching one of the first sneakers specifically designed for women in the 1980s. It also sells workout clothes for men and women.
The Reebok auction had attracted interest from private-equity firms such as Advent International, Cerberus Capital Management, CVC Capital Partners, and Sycamore Partners, the New York Post said in July.
News of the deal comes a little more than a month since Authentic Brands filed to go public on the New York Stock Exchange. Founded in 2010 by CEO Jamie Salter, Authentic Brands is a New York-based brand development, marketing, and entertainment company known for scooping up well-known but struggling brands, such as Barneys New York, Nine West, and Brooks Brothers.
”We’ve had our sights set on Reebok for many years, and we’re excited to finally bring this iconic brand into the fold,” Salter said in a statement. “Reebok not only holds a special place in the minds and hearts of consumers around the world, but the brand also has expansive global distribution.”
Write to Luisa Beltran at luisa.beltran@dowjones.com
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