Adidas Just Confirmed That It Is Looking to Sell Reebok
After months of speculation, Adidas has come out to say that it is reviewing options for Reebok—including a potential sale. The news comes 14 years after Adidas acquired Reebok for $3.8 billion.
Rumors about Adidas selling Reebok have circulated for years. Market analysts had said that the sale was more likely back in October because of declining sales due to the coronavirus pandemic. In its second-quarter earnings report, Reebok’s 2020 revenues fell by 42 percent.
Read Adidas' full statement about assessing strategic alternatives for Reebok below.
As part of the development of its new five-year strategy, adidas has begun to assess strategic alternatives for Reebok. These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company. A decision will be announced on March 10, 2021, when the company's new strategy is officially presented.
adidas acquired Reebok in 2006. As a result of the successful implementation of the turnaround plan "Muscle Up" initiated in 2016, the brand was able to significantly improve its profitability and returned to the profit zone in 2018, two years earlier than initially planned under "Muscle Up". In 2019, Reebok also returned to the growth path. Driven by double-digit growth in its home market North America, global Reebok sales increased by 2% on a currency-neutral basis compared to the previous year.
According to reports, interested parties in the sale include private equity firms Permira and Triton, China's Anta Sports, and VF Corp., which recently acquired Supreme.
We won't have to wait long to find out, though. As per the statement, Adidas will make a formal announcement about its decision on March 10, 2021, along with the presentation of the company's new five-year strategy.