According to information published by Yahoo Finance, the German company Adidas has reached an agreement for sell the Reebok brand ad Authentic Brands for about 2,5 billion dollars, that is 2,1 billion euros.
The German sporting goods retailer bought Reebok in 2006 for $ 3,8 billion to compete with Nike. However, after 15 years of below expectations sales, is ready to part with the American brand.
Index
The words of Kasper Rorsted, CEO of Adidas
“Reebok has been a valuable part of Adidas and we are grateful for the contributions the brand and its team have made to our company. With this change, we believe the Reebok brand will be well positioned for long-term success ", said Kasper Rorsted, CEO of Adidas AG, in a press release.
“As for Adidas, we will continue to focus our efforts on executing our 'Own the Game' strategy, which will allow us to grow in an attractive industry, gain market share and create value for all of our stakeholders," Rorsted added.
Evaluation of the sale of Reebok
Rick Helfenbein, a retail and fashion consultant and former CEO of the American Apparel & Footwear Association, told Yahoo Finance this is an excellent opportunity for its new owner.
“Authentic Brands' purchase of Reebok is truly great news for a highly regarded name. The wonder of industries is that brands die only in the minds of their owners, while the general public is generally unaware of transactions between companies. With the force of Authentic Brands, we expect Reebok to be a pioneer in a very active market,” Helfenbein said.
The deal should end in the first quarter of 2022. The Authentic Brands Group, owned by BlackRock (BLK), has extensive experience in the apparel and footwear industry with Aéropostale, Airwalk, Nautica, Volcom and IZOD under its command.
For Jamie Salter, founder, president and CEO of Authentic Brands Group, the acquisition of Reebok «An important milestone has been reached: we are committed to preserving Reebok's integrity, innovation and values. We look forward to working closely with the Reebok team to build on the success of the brand ».
And what does this news mean for CrossFit®?
In March of this year, Reebok President Matt O'Toole reiterated his commitment to the CrossFit® community to the Morning Chalk Up website, saying:
“Don't worry, Reebok will remain committed to supporting athletes, affiliate partners and the global CrossFit® community. This is a community in which we have believed from day one and we have no intention of moving away ”.
Reebok has also recently revamped its roster of athletes in recent months, adding Christian Harris, Amanda Barnhart, Fee Saghafi, Saxon Panchik and Haley Adams.
Well, in theory we shouldn't see any major changes between Reebok and CrossFit®.
But you, what do you think?