In 2020, the news of Adidas selling Reebok shook the sports and fashion industry. The question on everyone’s mind was, “Who bought Reebok?” The answer to this question could have a huge impact on the future of the brand and the industry as a whole.
Rumors were flying about potential buyers, including companies like VF Corp, Anta Sports, and even Amazon. The anticipation was high as the sale of Reebok could potentially change the landscape of the industry and shift the balance of power among the major players. In this article, we will explore the answer to the question, “Who bought Reebok?” and what it means for the future of the brand.
Who Bought Reebok?
In November 2020, it was announced that Authentic Brands Group had agreed to purchase Reebok from Adidas for $2.4 billion. The deal is expected to close in the first quarter of 2021. Authentic Brands Group is a brand development and licensing company that owns a portfolio of well-known fashion and entertainment brands.
Who Bought Reebok?
Reebok, one of the most popular sports brands in the world, is now under new ownership. In November 2020, it was announced that Authentic Brands Group (ABG) had agreed to purchase Reebok from Adidas for $2.1 billion. This acquisition marks a new chapter for the iconic brand, which has been struggling to keep up with its competitors in recent years. Let’s take a closer look at who ABG is and what this means for Reebok’s future.
Who is Authentic Brands Group?
ABG is a New York-based brand development company that specializes in acquiring and revitalizing well-known consumer brands. The company has a portfolio of more than 30 brands, including Marilyn Monroe, Elvis Presley, and Sports Illustrated. ABG’s business model involves acquiring brands and then licensing them out to other companies to produce products. The company has been successful in turning around struggling brands, and it has a reputation for being able to breathe new life into iconic names.
ABG’s CEO, Jamie Salter, has said that he sees a lot of potential in Reebok. He believes that the brand has been undervalued and underutilized in recent years, and he is excited to have the opportunity to bring it back to its former glory. Salter has also stated that he plans to work closely with Reebok’s existing management team to develop a strategy for the brand’s future.
The Benefits of the Acquisition
So what does this acquisition mean for Reebok and its customers? There are several potential benefits to the deal. First, ABG has a track record of turning around struggling brands, so there is reason to believe that it can do the same for Reebok. The company has access to a wide range of resources, including marketing expertise, design teams, and manufacturing facilities, which could help to revitalize the brand.
Another potential benefit is that ABG has a strong focus on e-commerce. The company has been successful in building online sales channels for its other brands, and it could do the same for Reebok. This could help the brand reach a wider audience and increase its sales.
Reebok vs. Competitors
Reebok has struggled to keep up with its competitors in recent years. Brands like Nike and Adidas have dominated the market, leaving Reebok behind. However, the acquisition by ABG could give Reebok a new edge. ABG has experience in creating partnerships and collaborations, which could allow Reebok to team up with other brands and increase its profile.
It is also worth noting that Reebok has a loyal customer base that has stuck with the brand through thick and thin. If ABG can tap into this audience and give them a reason to be excited about Reebok again, the brand could make a comeback.
Conclusion
In conclusion, the acquisition of Reebok by Authentic Brands Group is a significant development for the brand. ABG has a proven track record of turning around struggling brands, and it has the resources to help Reebok succeed. The deal could also help to differentiate Reebok from its competitors and give the brand a new edge. Only time will tell how successful the acquisition will be, but there is reason to be hopeful for the future of this iconic brand.
Frequently Asked Questions
Here are some common questions and answers about the recent purchase of Reebok:
1. What company bought Reebok?
In November 2021, it was announced that Authentic Brands Group (ABG) had purchased Reebok from Adidas. ABG is a brand development company that owns and manages over 30 brands, including Spyder, Juicy Couture, and Sports Illustrated.
The purchase price for Reebok was $2.1 billion, and ABG plans to focus on expanding the brand’s presence in fitness and lifestyle categories.
2. Why did Adidas sell Reebok?
Adidas had owned Reebok since 2006 but had struggled to turn the brand around in recent years. Reebok’s sales had declined, and it was no longer seen as a major player in the athletic footwear and apparel market.
Adidas decided to sell Reebok to focus on its core brand and invest in its growth opportunities. The sale also allowed Adidas to streamline its business and focus on its strengths.
3. What does the future hold for Reebok under ABG?
ABG has said it plans to invest in Reebok’s marketing and product development to revamp the brand’s image. The company wants to expand Reebok’s presence in the fitness and lifestyle categories and capitalize on the growing trend of athleisure clothing.
ABG has a successful track record of reviving struggling brands, such as Aeropostale and Forever 21, and is confident it can do the same for Reebok.
4. Will Reebok still be sold in Adidas stores?
As part of the sale agreement, Adidas will continue to sell Reebok products in its stores and on its website for two years. After that, ABG will have the option to continue the partnership or pursue other retail channels.
ABG has also said it plans to open standalone Reebok stores and expand the brand’s international presence.
5. What does the sale of Reebok mean for the athletic footwear and apparel market?
The sale of Reebok to ABG is not expected to have a significant impact on the overall athletic footwear and apparel market. Reebok’s market share has declined in recent years, and the brand has struggled to keep up with competitors such as Nike and Under Armour.
However, it will be interesting to see if ABG’s investment in Reebok can help the brand regain its foothold in the market and compete more effectively with its rivals.
In conclusion, the question on everyone’s mind has finally been answered: Authentic Brands Group (ABG) has purchased Reebok for $2.5 billion. This acquisition marks a significant move for ABG as they expand their portfolio to include one of the world’s most recognizable sportswear brands.
With ABG’s expertise in brand management and Reebok’s strong heritage in athletic footwear and apparel, this acquisition has the potential to create a powerhouse in the industry. It will be exciting to see how ABG leverages Reebok’s brand equity to drive growth and innovation.
Overall, this acquisition seems like a win-win for both companies and the industry as a whole. It will be interesting to watch how ABG’s ownership impacts Reebok’s future product development, marketing strategy, and overall brand perception. As consumers, we can’t wait to see what this new partnership will bring to the world of athletic wear.
