The German activewear large stated ABG would pay the bulk in money at closing of the transaction and the rest comprised of deferred and contingent consideration.
The deal is predicted to shut within the first quarter of 2022.
Adidas stated it intends to share nearly all of the money proceeds with its shareholders.
“Reebok has been a valued a part of Adidas, and we’re grateful for the contributions the model and the group behind it have made to our firm,” commented Kasper Rorsted, chief government officer of Adidas AG. “With this variation in possession, we consider the Reebok model shall be well-positioned for long-term success.
ABG had been thought of the frontrunner for Reebok.
“This is a vital milestone for ABG, and we’re dedicated to preserving Reebok’s integrity, innovation and values — together with its presence in bricks-and-mortar,” stated Jamie Salter, founder, chairman and CEO of ABG. “We sit up for working intently with the Reebok group to construct on the model’s success.”
ABG’s holdings embody all the pieces from Barneys New York and Brooks Brothers to Ceaselessly 21. On the activewear aspect, ABG counts Spyder, Greg Norman, Prince, Above the Rim, Hind and Volcom as amongst its properties. It additionally owns Sports activities Illustrated in addition to the IP for Muhammad Ali and Julius Erving.
Adidas acquired Reebok in 2006 for $3.8 billion, which on the time included the Rockport, CCM Hockey and Greg Norman manufacturers. Adidas later offloaded these manufacturers.
Reebok has lengthy been overshadowed by its dad or mum firm and has been a perennial underperformer. Though outcomes have improved up to now couple of years, the model has struggled greater than its dad or mum in the course of the pandemic.
Adidas finally determined to give attention to its flagship model and disclosed plans to promote Reebok final February.
https://wwd.com/business-news/mergers-acquisitions/reebok-sold-to-authentic-brands-group-1234898016/ | Reebok Offered to Genuine Manufacturers Group – WWD