Adidas Reebok

2021-02-17   |   by CusiGO

Adidas, the German sporting goods brand, announced in a statement on Wednesday that it had decided to sell Reebok, the US brand it acquired in 2006 for about 3 billion euros. In view of Reebok’s poor performance, the German manufacturer has decided to spin off its business and focus on developing its own brand, and will separate its account from Reebok digital from the first quarter of this year.

As part of its five-year strategic development, adidas has completed the evaluation of Reebok’s strategic alternatives. As a result of this review, the company has decided to start a formal process aimed at investing in Reebok, “the German brand’s three page communique said, This confirms the decision as it intends to “focus on Further Strengthening the adidas brand’s leadership in the global sporting goods market.”.

Adidas chief executive added in the memo that they concluded that the two brands “will be better able to realize their respective growth potential” and provide “very attractive long-term growth opportunities, especially for iconic brands” in a single market. He said they would work to ensure a “successful future” for Reebok and its employees in the coming months.

The company will release more details of the sale process in an investor day on March 10, but has announced that it will report Reebok’s results as a closed deal from the first quarter of this year.

Adidas bought Reebok in 2006 for 3.1 billion euros, but the poor performance of German education in recent years has put a heavy burden on the German manufacturer, who has been evaluating how to deal with American education for several months. As early as December, Adidas announced that it had begun to analyze Reebok’s “strategic alternatives”, including the final choice of curing or selling Reebok.