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Adidas has decided to sell Reebok, which the company bought in 2006 for $3.8bn. The new owner is Authentic Brands Group, which is known for acquiring failing brands. The group purchased Reebok for $2.5bn.
German company Adidas got rid of Reebok, which it incorporated in order to revolutionise the market and weaken its main competitor – Nike. One of the reasons for selling Reebok appeared to be a lack of a coherent strategy for the brands to coexist, and now Adidas has stressed that it wants to focus on developing its own brand.
For years now, Reebok products have accounted for the smaller share of Adidas’ sales, and the brand itself began to need a recovery plan. It was introduced in 2016 by the new Adidas CEO, Kasper Rorsted, resulting in Reebok’s sales jumping to €823m in the opening half of this year. By comparison, the brand reached €600m in 2020 but also generated a €69m loss. It was only this year that Reebok made gains, with a profit of €68m.
The new owner, the Authentic Brands Group, is a company that owns 30 brands, such as Forever21, Nautica, and Volcom. Some of the acquired brands belonging to the American group have been given a new lease of life thanks to the company’s investments, and according to ABG, also in the case of the new acquisition, the group aims to continue to create Reebok’s corporate image and preserve the integrity, innovation, and the value of the brand.
ABG paid $2.5bn dollars for Reebok, which is as much as $1.3bn less than Adidas invested when it acquired the brand in 2006. This is an important moment in ABG’s development as the company prepares for its debut on the stock exchange.
A detailed analysis of the latest trends, changes and strategies of the largest players in the sports goods market in Poland can be found in the PMR report: “Sports goods and sportwear market in Poland 2020. Market analysis and development forecasts for 2020-2025″.