Adidas is parting ways with Reebok, new reports state.
Reebok has been a subsidiary brand of Adidas since 2005, but in a $2.5 billion majority cash deal the footwear and clothing company will now join Authentic Brands. Yahoo! Finance reports that following lower-than-expected sales, Adidas is ready to let go.
“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. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success,” said Kasper Rorsted, CEO of Adidas AG, in a statement, according to the site.
“Authentic Brands purchasing of Reebok is really excellent news for a highly valued name. The industry wisdom is that brands only die in their owner’s mind, while the public at-large is generally unaware of inter-company transactions. With the muscle behind Authentic Brands, expect Reebok to become a front runner in a very active market,” adds retail & fashion industry consultant and former CEO of the American Apparel & Footwear Association, Rick Helfenbein.
According to Yahoo! Finance, the multibillion-dollar deal is expected to close in the first quarter of 2022. Stay tuned for more detail.