Adidas completes sale of Reebok
German sports group Adidas has finally completed the sale of its American brand Reebok to Authentic Brands Group (ABG) for €2.1 billion, as Adidas announced on Tuesday March 1 from its headquarters in Herzogenaurach.
To ensure a smooth transition, the German group will continue to oversee Reebok's operational activities on behalf of ABG in several markets for a period of time. “The completion of the Reebok sale is another important step in the execution of our ‘Own the Game’ strategy,” said Adidas’s CFO Harm Ohlmeyer on Tuesday.
As previously announced, Adidas wants to transfer some of the proceeds from the sale to its shareholders.
The group also intends to buy back €1.5 billion worth of shares, over a period extending from mid-March to the end of Q3. This operation is additional to the current buyback programme, which could be worth up to €4 billion by 2025.
A few days ago, US-based ABG announced that it would entrust Reebok's European business to New Guards Group, an Italian fashion group owned by Farfetch since 2019. In December, Reebok’s new owner also heralded an agreement with the JD group to distribute the brand in the latter’s 2,850 European stores.
In 2020, Reebok generated a revenue of €1.4 billion, with a gross margin of 44.8% and a net operating loss of €38 million.
Copyright © 2023 FashionNetwork.com All rights reserved.