In 2005, Adidas acquired Reebok in a deal worth $3.8 billion. For over a decade, the two brands operated under the Adidas Group umbrella. However, in 2020, Adidas announced that it would be selling Reebok, sparking speculation about who would acquire the iconic sportswear brand.
The sale of Reebok by Adidas presents an interesting turn of events in the athletic apparel industry. With various potential buyers rumored to be interested, the question on everyone’s mind is: who will ultimately take over the reins of Reebok? Join us as we explore the possible contenders and what the acquisition of Reebok could mean for the future of sportswear.
Adidas sold Reebok to Authentic Brands Group (ABG) in 2021 for $2.5 billion. ABG is a brand development company that specializes in buying and revitalizing struggling brands. Reebok will now be under the management of ABG, who plans to focus on expanding the brand’s presence in the fitness and lifestyle markets.
Who Bought Reebok From Adidas?
Reebok, the popular sports brand, was acquired by Adidas in 2006 for a whopping $3.8 billion. However, after years of struggling to compete with other sports brands like Nike and Under Armour, Adidas announced in late 2020 that it would be selling Reebok. So, who bought Reebok from Adidas?
Authentic Brands Group (ABG)
Authentic Brands Group (ABG), a U.S.-based brand management company, announced in late 2020 that it had agreed to purchase Reebok from Adidas for $2.5 billion. ABG is known for acquiring struggling brands and reviving them, and it has a portfolio that includes brands like Juicy Couture, Nine West, and Barneys New York.
ABG plans to leverage its global network and expertise in brand development to revive Reebok and return it to its former glory. With a focus on sustainability and innovation, ABG hopes to make Reebok a leading brand in the sports and fashion industries.
In addition to ABG, other companies reportedly interested in purchasing Reebok included VF Corp, the owner of brands like The North Face and Timberland, and China’s Anta Sports.
The Benefits of the Acquisition
The acquisition of Reebok by ABG has several potential benefits for both companies. For ABG, it adds another well-known brand to its portfolio and expands its reach in the sports and fashion industries. Reebok also has a strong presence in the fitness market, which aligns with ABG’s focus on health and wellness.
For Reebok, the acquisition by ABG provides a fresh start and access to ABG’s resources and expertise in brand development. This could help Reebok regain its position as a leading sports brand and compete more effectively with companies like Nike and Under Armour.
Reebok vs. Adidas
One question on many people’s minds is how Reebok’s acquisition by ABG will affect its relationship with Adidas. While Adidas will no longer have ownership of Reebok, the two companies have announced that they plan to continue their partnership.
Adidas will still manufacture and distribute Reebok products until 2040, under a long-term licensing agreement. This means that Reebok will still have access to Adidas’ resources and expertise in manufacturing and distribution, which could help it compete more effectively with other sports brands.
The Future of Reebok
With ABG’s acquisition of Reebok, the future of the brand looks bright. ABG has a proven track record of reviving struggling brands, and its focus on sustainability and innovation could help Reebok stand out in the sports and fashion industries.
Reebok will also continue to have access to Adidas’ resources and expertise, which could help it compete more effectively with other sports brands. With the right strategy and execution, Reebok could once again become a leading brand in the sports and fashion industries.
Conclusion
In conclusion, Reebok’s acquisition by ABG represents a fresh start for the struggling sports brand. ABG’s expertise in brand development, combined with Adidas’ resources and expertise in manufacturing and distribution, could help Reebok regain its position as a leading sports brand. The future of Reebok looks bright, and we’re excited to see what the brand will achieve in the coming years.
Freequently Asked Questions
Who bought Reebok from Adidas?
In 2005, Adidas bought Reebok for $3.8 billion. However, in 2020, Adidas sold Reebok to Authentic Brands Group for $2.1 billion. Authentic Brands Group is a brand development company that owns a variety of fashion and lifestyle brands.
The sale of Reebok to Authentic Brands Group is still pending regulatory approval, but it is expected to be finalized by the end of 2021. Reebok will continue to operate as a standalone brand within the Authentic Brands Group portfolio.
Why did Adidas sell Reebok?
Adidas decided to sell Reebok because the brand was no longer profitable. Despite efforts to revamp the brand and increase sales, Reebok continued to struggle. In 2020, Reebok’s sales declined by 7%, while Adidas’ sales increased by 1%. By selling Reebok, Adidas hopes to focus on its core brand and improve its profitability.
Additionally, Adidas is facing increased competition from other sportswear brands such as Nike and Under Armour. By selling Reebok, Adidas can focus on competing directly with these brands without being distracted by a struggling subsidiary.
What will happen to Reebok after the sale?
After the sale of Reebok to Authentic Brands Group, Reebok will continue to operate as a standalone brand. However, Authentic Brands Group may make changes to the brand’s strategy and product offerings in order to improve profitability.
Authentic Brands Group has experience in managing and developing fashion and lifestyle brands, but it is not a sportswear company. As a result, it is unclear how the company will manage Reebok’s sportswear offerings and marketing strategies.
How will the sale of Reebok affect Adidas?
The sale of Reebok will allow Adidas to focus on its core brand and improve its profitability. Without the distraction of a struggling subsidiary, Adidas can invest more resources into its marketing, product development, and retail strategies.
Additionally, Adidas’ financial performance may improve as a result of the sale. Adidas sold Reebok for $2.1 billion, which will provide a cash injection that the company can use to invest in its core brand or pay down debt.
What does the sale of Reebok mean for consumers?
The sale of Reebok is unlikely to have a significant impact on consumers in the short term. Reebok will continue to operate as a standalone brand, and consumers will still be able to purchase Reebok products from retailers and online.
However, in the long term, Authentic Brands Group may make changes to Reebok’s product offerings and marketing strategies, which could affect the brand’s appeal to consumers. It remains to be seen how Authentic Brands Group will manage Reebok and what changes, if any, will be made to the brand.
Adidas is Selling Reebok to WHO?
In conclusion, the question of who bought Reebok from Adidas has finally been answered. Authentic Brands Group (ABG) has acquired the iconic sports brand for $2.5 billion. This acquisition is expected to bring in a new era of growth and innovation for Reebok, as ABG has a proven track record of reinvigorating heritage brands.
The decision to sell Reebok was a strategic move by Adidas, who aims to focus on its core brand and boost profitability. With ABG at the helm, Reebok is set to benefit from a fresh perspective and strategic direction. The acquisition also aligns with ABG’s mission to acquire and revitalize brands that have a strong consumer following.
Overall, the acquisition of Reebok by ABG is a win-win situation for both companies. Adidas can now concentrate on its core business, while Reebok can benefit from ABG’s expertise in brand management and development. It will be exciting to see what the future holds for Reebok under ABG’s leadership.
