ADIDAS sells REEBOK for US$ 2.5 billion
REEBOK, the brand founded in 1895 in the United Kingdom by Joseph William Foster, became famous in its early days for launching the first sports shoes with spikes for running. Many athletes enjoyed these characteristics and the brand gained international renown.
In the course of time, the company capitalized and went through stages of sustained growth until in 2005 it was bought by ADIDAS for 3.8 billion dollars, having its headquarters in Boston, United States, where it was established as a subsidiary of the German group.
After a period of declining sales and revenues, in 2016 the brand presented a debt restructuring plan, which, when unsuccessful, in December 2020, its owner ADIDAS announced its sale.
The decision opened the possibility for Authentic Brands Group -ABG- to negotiate its purchase. This American company, which owns different clothing brands -AEROPOSTALE, NAUTICA and FOREVER21- and commercial chains -BARNEYS NEW YORK and J.C. PENNEY-, has among its partners the former NBA athlete, Shaquille O'Neal.
It was the basketball player himself, who induced the other shareholders to buy REEBOK, due to the strong sporting and emotional ties established with the brand that at the beginning of his career in 1992, allowed him to sign a contract for several years worth US$ 15 million.
According to ABG President and Chief Marketing Officer Nick Woodhouse, O'Neal was a crucial part in driving ABG's acquisition of the brand. In his recent weekly business meetings with the former athlete, Woodhouse described that "most of the conversations started with Have you bought REEBOK yet?"
Jamie Salter, Founder, President and CEO of ABG, said: "We have had our sights set on REEBOK for many years and are excited to finally bring this iconic brand to our portfolio. REEBOK not only holds a special place in the mind and heart of consumers around the world, but the brand also has a wide global distribution. ADIDAS has been a good manager of the brand, and we look forward to having the REEBOK team to continue their great work and promote their position as one of the world's leading consumer brands".
REEBOK currently operates in 80 countries, with approximately 70% of its business coming from outside the United States and Canada. The main markets are Latin America, Asia Pacific, Europe and Russia. ABG's goal is to maintain the brand's global presence in the retail, wholesale and e-commerce channels.
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