German sportswear giant Adidas on announced on Thursday it had made a deal to sell the Reebok brand to US company Authentic Brands Group for 2.1 billion euros ($2.5 billion).
Back in February, the company started the formal process of selling Reebok, which it acquired in 2006 for roughly $3.8 billion, due to the brand’s underperformance on the market.
“Adidas announced today that it has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for a total consideration of up to € 2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration,” the company said in a statement.
The transaction is expected to be closed in the first quarter of 2022 with most of the proceeds to be shared with Adidas’ shareholders, according to the statement.
“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,” Adidas CEO Kasper Rorsted stated.
Adidas acquired Reebok in 2006 as part of an attempt to overtake its main sportswear rival, Nike. Reebok produces both athletic and lifestyle wear, and has created branded apparel for both CrossFit and Ultimate Fighting Championship.