Authentic Brands Group takes over Reebok for $2.5 billion
Adidas AG is has decided to trade off Reebok to Authentic Brands Group Inc. for 2.1 billion euros ($2.5 billion). With the help of this deal, Authentic Brands’ portfolio would diversify. After acquiring Barney New York and Brook Brothers, ACG completed 30 brands and would soon go public in the US Stock exchange.
According to financial experts, this deal is supposed to take place in the first quarter of 2022, and it would mark a huge milestone for 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.”
Despite several attempts, Adidas has miserably failed to revive the brand in the last 10 years. On the flip side, Authentic Brands has been flourishing financially.
Currently, Reebok is operational in 80 + countries and has been offering high-quality sportswear to its customers. ABG acquired Reebok with a mindset to maintain the brand’s global footprint across different channels including retail, wholesale, and e-commerce.
Reebok is a symbol of sports and pop culture and aspires to live up to the standards it has set for itself
Shaquille O’Neal said, “As a longtime partner of Reebok and an owner of ABG, it’s a dream come true to welcome this legendary brand to the family.”
With Reebok, ABG plans to connect strong brands with best-in-class licensees to pave the way into a network of partners that could seek to optimize value in the marketplace. The brand’s world headquarters will remain in Boston, and ABG will work closely with Adidas, Reebok’s President Matt O’Toole, and the entire Reebok team to transition the brand to ABG’s platform. Reebok’s operations will continue in the U.S. and Canada, Latin America, Asia Pacific, Europe, and Russia.
