Adidas (Herzogenaurach, Germany) has reached a deal to divest Reebok to Authentic Brands Group (New York), reports CNN. Adidas purchased Reebok in 2006 for $3.8 billion and will sell the struggling brand for approximately $2.5 billion.
“Part of the issue was a lack of clarity around what Adidas wanted Reebok to be. As a result, it was neither seen as the go-to brand for sporting professionals nor for those looking for athleisure fashion and style,” Neil Saunders, managing director of GlobalData Retail, said in note to clients.
The sale, which is expected to close in early 2022, follows Authentic Brands recent purchases of bankrupt brands like Brooks Brothers, Aeropostale and Forever 21 in the past few years. Authentic filed for an IPO last month.