Adidas has decided to sell fellow sporting brand Reebok to the Authentic Brands Group (ABG). This comes after Adidas bought Reebok back in 2006 for $3.8 billion as part of the German sporting brand’s plan to gain a bigger share of the market compared to their rival Nike.
ABG owns other well-known retail brands like Forever New and Brooks Brothers, as well as The Sports Illustrated magazine.
After agreeing to buy Reebok for $2.5 billion, much less than what Adidas bought it for, the retail conglomerate is excited to take over.
“We’ve had our sights set on Reebok for many years, and we’re excited to finally bring this iconic brand into the fold,” Jamie Salter, founder, chairman and CEO of ABG, said.
“We are committed to preserving Reebok’s integrity, innovation, and values – including its presence in brick and mortar,” he added.
Reuters reports that after Kasper Rorsted took over as Adidas CEO in 2016, he launched a turnaround plan which helped Reebok return to profitability, but its performance continued to lag that of the core Adidas brand and it was then hit by the COVID-19 pandemic.
Analysts believe that Reebok’s recent collaboration with rapper Cardi B and their new renewed focus on women’s apparel has given the brand a massive boost.
Watch the CBS Boston video below for more on Adidas’ plan to sell Reebok to ABG.
Image credit: The Guardian