Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Gmail
Reserve Bank Of India (RBI)
Reliance
Sensex
New Labour Laws in India
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Adidas is selling Reebok to ABG for $2.5 billion
Business

Adidas is selling Reebok to ABG for $2.5 billion

Adidas is selling Reebok to ABG for $2.5 billion
Written by Chandraveer Mathur
Aug 14, 2021, 01:32 pm 2 min read
Adidas is selling Reebok to ABG for $2.5 billion
Adidas is selling Reebok to Authentic Brands Group for $2.5 billion

Sportswear major Adidas has announced that it will be selling Reebok to Authentic Brands Group (ABG) that has been snapping up labels ahead of a planned initial public offering (IPO). ABG expressed interest in preserving Reebok's ethos and retaining the headquarters in Boston, and operations in North and Latin America, Asia-Pacific, Europe, and Russia. Here are more details on this deal.

The purchase
Adidas planned to penetrate American market with Reebok

Back in 2006, Adidas acquired Reebok for $3.8 billion in an attempt to break rival brand Nike's stronghold in the United States. However, it was able to penetrate the market with its own brand recently, thanks to partnerships with pop icons Kanye West, Beyonce, and Pharrell Williams, among others. Reebok's sluggish performance prompted Adidas investors to suggest the brand be sold.

The sale
Reebok's buyer already owns Brooks Brothers, Barneys New York, Forever21

Adidas is now selling Reebok to ABG for $2.5 billion, less than what it had purchased the brand for. We just hope the loss in this sale is offset by the market share Adidas earned by dethroning Nike. Over the last 11 years, ABG has accrued over 30 labels retailing in around 6,000 stores, including apparel brands Aéropostale, JC Penney, and Forever21.

No impact
Recently revealed five-year plan remains unaffected by this deal: Adidas

Adidas said that the Reebok sale had no impact on its financial outlook for the current year or the targets detailed in its five-year strategic plan revealed in March. Reuters reported that the Reebok sale will be paid for mostly in cash around the first quarter of 2022. A majority of the cash proceeds will be shared among the shareholders, the brand added.

Number crunching
Adidas successfully turned Reebok into a profitable business

Last week Adidas claimed that Reebok made a net gain of €68 million compared to a net loss of €69 million in the first half of 2020, thanks to Adidas CEO Kasper Rorsted's turnaround plan for the brand. Notably, Adidas has already sold off Rockport, CCM Hockey, and Greg Norman brands (part of the original Reebok purchase) for €400 million.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Chandraveer Mathur
Chandraveer Mathur
Mail
I am a design engineer with a knack for all things related to tech, smartphones, photography, and automobiles. When I am not tinkering with gadgets, I enjoy books, CGI, a lovingly curated audio library, and therapeutic solo drives.
Latest
Nike
Adidas
Reebok
Latest
ENG vs IND, 1st T20I: Preview, stats, and more
ENG vs IND, 1st T20I: Preview, stats, and more Sports
Ajmer Dargah Khadim arrested over 'beheading' remarks against Nupur Sharma
Ajmer Dargah Khadim arrested over 'beheading' remarks against Nupur Sharma India
Domestic LPG increases by Rs. 50/cylinder; third hike since May
Domestic LPG increases by Rs. 50/cylinder; third hike since May Business
2023 MG 4 electric hatchback, with 450km range, breaks cover
2023 MG 4 electric hatchback, with 450km range, breaks cover Auto
Garena Free Fire MAX July 6 codes: How to redeem
Garena Free Fire MAX July 6 codes: How to redeem Technology
Nike
Nike-Michael Jordan deal inspires Ben Affleck, Matt Damon's third collaboration
Nike-Michael Jordan deal inspires Ben Affleck, Matt Damon's third collaboration Entertainment
Kanye West's sneakers sold for record $1.8mn at private auction
Kanye West's sneakers sold for record $1.8mn at private auction Entertainment
Forced Uighur labor: H&M, Nike face boycott in China
Forced Uighur labor: H&M, Nike face boycott in China World
MPL becomes Team India's kit sponsor for three years
MPL becomes Team India's kit sponsor for three years Sports
'Apple One' service bundles to be launched with iPhone 12
'Apple One' service bundles to be launched with iPhone 12 Business
More News
Adidas
FIFA World Cup 2022: Adidas unveils official match ball
FIFA World Cup 2022: Adidas unveils official match ball Sports
This 'plastic' deathbed is a clarion call to save climate
This 'plastic' deathbed is a clarion call to save climate Inspirational
Tech brand files $20mn lawsuit against Kanye West for non-payment
Tech brand files $20mn lawsuit against Kanye West for non-payment Entertainment
Puma buys bid document for Team India's kit sponsorship
Puma buys bid document for Team India's kit sponsorship Sports
I am looking forward to competing again, says Lionel Messi
I am looking forward to competing again, says Lionel Messi Sports
More News
Reebok
Wear Reebok's 'Ghostbusters' sneakers this Halloween, shoo the ghosts away!
Wear Reebok's 'Ghostbusters' sneakers this Halloween, shoo the ghosts away! Entertainment
CrossFit CEO resigns over controversial remarks on George Floyd's death
CrossFit CEO resigns over controversial remarks on George Floyd's death World
Soon, big brands could advertise on WhatsApp via GIFs, stickers
Soon, big brands could advertise on WhatsApp via GIFs, stickers Business
This video of Kangana doing a perfect handstand is #FitnessGoals
This video of Kangana doing a perfect handstand is #FitnessGoals Entertainment
Bolt bids farewell with a bronze
Bolt bids farewell with a bronze Sports
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022