BERLIN (dpa-AFX) - adidas (ADDYY.PK, ADDDF.PK) agreed to sell its underperforming Reebok business to Authentic Brands Group for a total consideration of up to 2.1 billion euros, as the German sporting goods company concentrates on its core brand.
The majority of the price will be paid in cash at closing, with the rest coming as deferred and contingent consideration. It expects to close the deal in the first quarter of 2022, adidas said in a statement.
adidas plans to share the majority of the cash proceeds to be received upon closing with its shareholders.
Adidas acquired Reebok for $3.8 billion in 2006.
In March 2021, adidas presented its 2025 'Own the Game' Strategy designed to significantly increase sales and profitability and gain market share by 2025. adidas assessed strategic alternatives for Reebok with a focus on ensuring both adidas and Reebok would be well positioned for sustainable growth.
adidas noted that the sale of Reebok will not impact its financial outlook for the current year or the company's 2025 financial ambition.
Copyright RTT News/dpa-AFX