Adidas Plans to Divest from Rebook After 15 Years

Adidas is gearing up to punt on Reebok after its 15+ year rejuvenation effort fell short.

Adidas acquired Reebok for $3.8 billion in 2005. A potential sale could yield between $1.2 billion and $1.8 billion for Adidas, per Bloomberg. More details will be shared on March 10.

Behind the breakup: Starting in 2016, Adidas CEO Kasper Rørsted shuttered underperforming Reebok stores and let some licensing deals expire to reduce expenses.

• Reebok was profitable in 2018, but sales grew only only 2% in 2019.
• The UFC did not renew its six-year licensing deal with Reebok last year, partnering instead with equipment and apparel manufacturer Venum.

Looking ahead...Prospective buyers, including in Asia, could see value in Reebok’s collection of sneakers and clothing dating back decades. Meanwhile, Adidas’s new five-year plan renews its longstanding focus on competing with its rival, Nike.