Adidas has successfully sold its American brand, Reebok, to Authentic Brands Group (ABG) for €2.1 billion. The sale was officially announced by Adidas on March 1st at its headquarters in Herzogenaurach.

To ensure a smooth transition, Adidas will continue to oversee Reebok’s operational activities in certain markets on behalf of ABG for a defined period of time. This transition is a key step in Adidas’ “Own the Game” strategy, as stated by Harm Ohlmeyer, Adidas’ CFO.

As part of its plan, Adidas will use a portion of the proceeds from the sale to benefit its shareholders. With this in mind, the company intends to repurchase €1.5 billion worth of shares, a process that will take place from mid-March until the end of the third quarter. This buyback program is an addition to the existing program, which has the potential to reach a value of up to €4 billion by 2025.

ABG has also made important announcements regarding the future of Reebok. The European business of Reebok will now be entrusted to New Guards Group, an Italian fashion group that has been owned by Farfetch since 2019. Furthermore, ABG has secured an agreement with the JD group to distribute the Reebok brand in its 2,850 European stores.

In 2020, Reebok generated €1.4 billion in revenue, with a gross margin of 44.8% and a net operating loss of €38 million. The acquisition of Reebok by ABG provides an opportunity for the brand to revitalize and strengthen its position in the competitive sports industry.

The completion of the sale marks a significant milestone for both Adidas and ABG. Adidas can now focus on its core brand and growth strategies, while ABG has the chance to reimagine and reshape Reebok. The future of Reebok under ABG’s ownership, alongside the collaborations with New Guards Group and JD, will undoubtedly shape the brand’s trajectory in the global market.

For more information on the sale of Reebok, visit the official Adidas press release here. Learn about Authentic Brands Group and their portfolio of brands on their official website here.