There has been speculation since October that Adidas AG was looking to potentially sell Reebok. Today, the German athletic giant appeared to confirm the chatter.
“As part of the development of its new five-year strategy, Adidas has begun to assess strategic alternatives for Reebok. These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company,” Adidas wrote in a statement released from its headquarters in Herzogenaurach.
The company said a decision on Reebok is expected to be announced on March 10, 2021. This is the date when Adidas will present its new five-year strategy.
In October, a Bloomberg report stated Adidas AG was looking to sell the Boston-based athletic brand, and revealed an internal review was in its early stages. What’s more, Germany’s Manager Magazin stated Adidas planned to complete the sale by March 2021. Companies interested in acquiring Reebok, according to the Manager Magazin report, include VF Corp. in the U.S. and China-based Anta International Group Holdings Ltd.
Last month, a New York Times report stated Adidas was working with investment bank JPMorgan Chase & Co. to sell Reebok in a transaction that could happen as early as next year. In the report, the publication estimated that Reebok could sell for roughly $1 billion, which is far less than the $3.8 billion Adidas paid for the brand in 2005.
In Adidas AG’s statement today, the company said it implemented its “Muscle Up” turnaround plan for Reebok in 2016, and as a result, the heritage athletic brand returned to the profit zone in 2018 — two years earlier than its German parent company had anticipated.
Last year, Adidas AG said global Reebok sales increased by 2% on a currency-neutral basis compared to 2018, which was led by double-digit growth in North America.
