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Adidas bids adieu to Reebok, starts divestment of its underperforming brand

At present, Germany’s Adidas AG sells Adidas and Reebok sports shoes and clothes in India. Photo: Pradeep Gaur/MintPremium
At present, Germany’s Adidas AG sells Adidas and Reebok sports shoes and clothes in India. Photo: Pradeep Gaur/Mint

  • Adidas is starting a formal process to exit the business, and it will present more details on its new strategy 10 March, the company said Tuesday
  • Reebok is likely to attract interest from rival sporting goods companies, especially in Asia, as well as private equity suitors

Adidas AG plans to divest its underperforming Reebok brand as the German sportswear maker moves on after trying to revive its performance for more than a decade

Adidas is starting a formal process to exit the business, and it will present more details on its new strategy March 10, the company said Tuesday.

The company acquired Reebok for $3.8 billion in 2006, returned the division to profitability in 2018 and eked out 2% sales growth in 2019. Bloomberg reported in October that Adidas was exploring a sale and might start a strategic review, citing a person familiar with the matter.

Since his arrival at Adidas in 2016, Chief Executive Officer Kasper Rorsted has prioritized fixing Reebok’s long-sluggish performance. He closed underperforming Reebok stores and allowed some licensing deals to expire, cutting sales at the long unloved sporting label while slashing expenses even more.

Reebok is likely to attract interest from rival sporting goods companies, especially in Asia, as well as private equity suitors, Bloomberg reported in December, citing people familiar with the matter, who asked not to be identified because discussions are private. German publication Manager Magazin reported in October that interested parties include VF Corp., which owns the Timberland and North Face brands, as well as China’s Anta International Group Holdings.


This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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