"Iconic brands": Adidas wants to sell US subsidiary Reebok

"Iconic Brands"
Adidas wants to sell US subsidiary Reebok

The billion investment in the Reebok brand should help Adidas achieve a breakthrough in the fight against US market leader Nike. 15 years later, the German group is now changing its strategy. The own brand should be strengthened. Reebok is for sale.

Adidas separates from its US brand Reebok. The sporting goods manufacturer examined strategic alternatives for Reebok as part of the development of its new five-year strategy. This review has now been completed, and based on the result, it has now been decided to start a process of selling the US brand, announced Adidas AG. Reebok will be reported as a discontinued operation from the first quarter of 2021.

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Adidas took over Reebok in 2006 for around 3.1 billion euros in order to strengthen its position over world market leader Nike. In the future, the Herzogenaurach-based company wants to concentrate on further strengthening the leading position of the Adidas brand in the global sporting goods market. Adidas intends to announce further details on the strategic direction until 2025 on March 10 at a virtual investor and media day.

Reebok has been a restructuring case for years. At the beginning of November there were media reports that Adidas wanted to sell the US subsidiary after all. The company was never able to meet the high expectations associated with the takeover in 2006.

"The long-term growth opportunities in our industry are very attractive, especially for iconic sports brands," says Adidas CEO Kasper Rorsted, according to the announcement. "After careful consideration, we have come to the conclusion that Reebok and Adidas can realize their growth potential significantly better independently of one another. We will work flat out in the coming months to ensure a successful future for the Reebok brand and the team behind it."

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