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Adidas announced the sale of Reebok for €2.1 billion




Germany's Adidas AG, the second-largest manufacturer of sporting goods, is selling the Reebok brand for €2.1 billion to the U.S. company Authentic Brands Group, the company's press office said.





“Most of the cash will be paid in cash at closing and the remainder will be reimbursed by a deferred contingent payment,” the statement said.

The closing of the transaction is expected to occur in the first quarter of 2022. Adidas intends to use the bulk of the proceeds from the sale of Reebok to incentivize shareholders.

“The sale of Reebok will not affect Adidas' projections for the current year or the company's goals through 2025,” the company said.

Reebok has been owned by the German company since 2006. Adidas AG noted that for 15 years they failed to revive the brand. In particular, the company reported that the brand was badly affected by the pandemic: in the second quarter of 2020 Reebok's revenue fell by 42%. The beginning of the sale of the Reebok brand became known back in February of this year.



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TAGS: US NEWS, ECONOMY

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