German footwear brand Adidas (Herzogenaurach, Germany) has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for up to 2.1 billion euro, or $2.36 billion U.S., according to a press release. The sale is expected to close during the first quarter of 2022.
“Reebok has been a valued part of adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success,” said Kasper Rorsted, CEO of adidas AG in a statement.
Adidas bought Reebok in 2006 and launched a 2016 effort to turnaround the brand, which resulted in improved growth and profitability. In February of 2021, Adidas formally announced plans to divest Reebok to focus on strengthening its eponymous brand.