Adidas is beginning a formal process to sell Reebok, and further news about the moves is expected on March 10.
Adidas says goodbye to Reebok: the German company started a formal process to sell the company. More details about the movements are expected on March 10.
After having bought it 15 years ago for 3.8 billion dollars, the crisis of the pandemic has forced us to make this decision.
Adidas’ need is to try to get at least $ 1.8 billion. Reebok represents about 7.5% of the group’s sales.
Who could buy Reebok? According to Boston Globe, the company may attract the interest of rivals in Asia. « Several special purpose acquisition companies (SPACs) also showed interest, » the newspaper said.
The position of the CEO of Adidas
Kasper Rorsted, Adidas CEO, is at the helm of the operation. Since his arrival in 2016, he has sought to break out of the lowest performing Reebok stores. It also allowed some license agreements to expire, without exercising the option to renew them.
« After careful consideration, we have concluded that Reebok and Adidas will be able to grow much better apart from each other, » Rorsted said in a statement. « We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it. »
Changes in recent years
The Anglo-American company became profitable again in 2018, growing in sales in 2019. However, the pandemic crisis prevented the pace from continuing to rise.
Poonam goyal, an analyst at Bloomberg, said that the sale will allow Adidas « to focus on making up for the loss of ground against its rival, Nike. »
According to the German company, will unfold a « new five-year strategy ». This « involves further strengthening the brand’s leadership position in the global sporting goods market. »