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Adidas to Sell Reebok To Authentic Brands Group

Authentic Brands Group has reportedly entered into exclusive negotiations to purchase Reebok from Adidas for approximately $2.5 billion.

The deal is expected to close in the first quarter of 2023, subject to regulatory approvals and other customary closing conditions.

Adidas, which acquired Reebok in 2005 for $3.8 billion, has faced criticism for failing to effectively integrate the brand into its portfolio and leverage its growth potential.

In recent years, Reebok's sales have declined as the brand struggled to compete with more popular athletic footwear companies such as Nike and Under Armour.

The sale of Reebok would allow Adidas to focus on its core brand and potentially use the proceeds to invest in other areas, such as its e-commerce business or its growing presence in China.

Authentic Brands Group is a brand management company that owns a portfolio of well-known brands, including Forever 21, Nautica, and Aeropostale.

The company has a track record of acquiring struggling brands and turning them around, so it is possible that it could do the same for Reebok.

If the deal goes through, it would be the latest in a series of acquisitions by Authentic Brands Group, which has been aggressively expanding its portfolio in recent years.

The company has also acquired brands such as Brooks Brothers, Lucky Brand, and JCPenney.

The acquisition of Reebok would give Authentic Brands Group a strong foothold in the athletic footwear market and further diversify its portfolio.