Adidas announced on 12 August that it has agreed to sell Reebok to US retail company Authentic Brands Group (ABG) for $2.5 billion (Rp35.96 trillion), the majority of which will be paid in cash. The deal is expected to close in the first quarter of 2022. 

The decision was made after the German sportswear brand was pressured by investors to sell Reebok due to the Boston-based footwear company’s sluggish performance. Adidas will focus more on its core brand after this deal, concentrating its efforts to strengthen its own brand’s presence in the global sportswear market.

ABG is a prominent retail conglomerate in the US with famous brands, such as Juicy Couture, Nautica and Sports Illustrated, in its portfolio. Over the past few years, ABG has also acquired bankrupt brands, such as Brooks Brothers, Aéropostale and Forever21, and went public last month.

“We've had our sights set on Reebok for many years, and we’re excited to finally bring this iconic brand into the fold. We are committed to preserving Reebok’s integrity, innovation and values - including its presence in bricks and mortar,” Jamie Salter, founder, chairman and CEO of ABG, said.

Adidas acquired Reebok back in 2006 for $3.8 billion (Rp54,66 trillion) with the goal of expanding and taking down its US rival, Nike. However, despite being under Adidas’ wings as well with its collaborations with high-profile figures, such as Victoria Beckham, Cardi B and Ariana Grande,Reebok continues to underperform. It even failed to capitalise on the athleisure wear trend and lost market share to Lululemon, Nike and other athletic brands.

“After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realise their growth potential independently of each other,” said Adidas CEO Kasper Rorsted back in February when the company announced its plan to sell Reebok. 

This deal, however, will have "no impact" on Adidas outlook for the current year as well as on the company’s 2025 financial ambition for the upcoming years, Adidas said in a statement last Thursday (12 August).