The deal comes after Reebok sales have struggled after Nike bought the brand for $3.8 billion in 2006. That deal included Rockport, CCM Hockey and Greg Norman brands, which adidas later divested. Authentic Brands, which is preparing for an initial public offering, has a portfolio with a number of high-profile brands, including Aeropostale, Barney New York, Forever 21 and many more.
“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 Kasper Rorsted, CEO of adidas AG. “With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share and create sustainable value for all of our stakeholders.”
The deal, which is expected to close in the first quarter of 2022, will be paid for with mostly cash, with the remainder consisting of deferred and contingent consideration. Adidas stated the deal will have no impact on the company’s financial outlook for the current year or its 2025 financial ambition that was announced as part of its Own the Game strategy in March 2021.