June 2, 2023

Dubai Week

Complete Dubai News World

Adidas sells Reebok to an American group for 1 2.1 billion

Adidas sells Reebok to an American group for 1 2.1 billion

German sports group Adidas has announced the end of a 2. 2.1 billion deal to sell its Reebok brand to US company Brand Brands Group (ABG).

The deal is expected to expire in the first quarter of 2022, with the bulk of the amount to be paid in cash, after approval by the relevant authorities, the German panel said in a statement.

In early August, the group revealed it was finalizing sales of its subsidiary brand, which has not been in business since early 2021.

“We have always valued Reebok, and we are grateful for the contributions the brand and its teams make to our company,” Adidas Chairman Caspar Roerstead said in a statement. He pointed out that the group wants to focus on promoting its “adidas” brand.

“It’s an honor to carry on the Reebok tradition,” said Jamie Salter, ABG’s co-founder, between its brands Jesse Penny, Forever 21 and Brooks Brothers.

Adidas bought Reebok in 2006 for 3.1 billion in an attempt to gain an advantage over its main competitor, Nike.

Adidas has always had issues with its brand, and from time to time rumors spread that it could be sold. By the end of 2020 the brand will be worth only 3 803 million. Reebok’s revenue rose to 1. 1.75 billion in 2019, with a small fraction of Adidas’ total business estimated at .6 23.6 billion.

According to the German panel, Reebok’s sales will not affect Adidas’ financial outlook for the current year. The company raised its annual forecast in early August based on good results for the second quarter of the year, despite supply problems especially in Vietnam.

See also  Goldman Sachs: US Federal Reserve expects interest rates to rise 5 times by 2022

From April to June, the group’s net profit was 397 million euros, compared to a loss of 295 million a year ago, amid the first wave of “Covit-19”.

Headquartered in Hergogenorach (South), the group aims to increase sales by 20% annually and reach net income of 1. 1.4 billion to ில்லியன் 1.5 billion.

Follow our latest local and sports news and the latest political and economic developments through Google News