Adidas will sell Reebok for $1 billion as part of a restructuring of its business.
German sports apparel company Adidas plans to sell its inefficient Reebok brand — some 15 years after Adidas acquired the Boston-based brand to help it compete in the U.S. market — as part of a strategic plan to strengthen its position in the global sporting goods market, Forbes writes.
Adidas announced that as part of its new five-year strategy, it has decided to begin the formal process of selling the U.S. brand, details of which will be announced March 10.
Adidas announced it would close Reebok in the first quarter of 2021.
“Reebok and Adidas are much better able to realize their growth potential independently,” CEO Kasper Rohrsted said Tuesday, highlighting “very attractive” long-term growth opportunities in the market for “iconic sports brands.”
“We will work hard in the coming months to ensure a successful future for the Reebok brand and the team behind it,” he added.
$1 billion. According to a source at the bank, that’s how much the sports brand could be worth.