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The Authentic Brands Group is willing to pay Adidas $2.5 Billion to acquire the Reebok brand for a loss of $1.3 Billion.
Adidas announced this morning, Thursday the 12th of August, that it has agreed to sell Reebok. The buyer, Authentic Brands Group (ABG), is the licensed operator behind Nautica, Forever 21, Aéropostale, Lucky Brand, and Brooks Brothers. NYT states that as part of a cash deal, the over deal is worth €2.1 billion, or about $2.5 billion at current exchange. A scheduled closing is said to be the first quarter of 2022. As of December 2020, Forbes has estimated the brand to be worth shy of $2.4 Billion.
Adidas acquired Reebok in 2006 for $3.8 billion. That’s a loss of $1.3 billion, despite collaborations with some of the biggest entertainers on the planet. Furthermore, the sale comes as a key turnaround as Adidas focuses more on brands like IVYPark and their athleisure culture collaborations.
Reebok will be taking its collaborations and brand ambassadors to the Authentic brands. Conner McGregor, Allen Iverson, Cardi B & Kulture, JJ Watt, and Montrezzel Harrell of the LA Clippers will be part of the overall move.
Authentic Brands Group may not be a household name, but its properties are brands such as Marilyn Monroe, Forever 21, Muhammad Ali, Sports Illustrated, Elvis Presley, Juicy Couture, and Shaquille O’Neal. Just over 30 names and brands for which the company holds the intellectual property rights. But, there is no other brand like Reebok under the parent umbrella that comes with a list of sponsorships and global ambassadors.
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