German sportswear group, Adidas, which has its UK headquarters in Stockport, has announced plans to divest Reebok.
The sale forms part of Adidas Group’s five year strategy to focus on strengthening its global market-leading position.
Reebok was originally founded in Bolton and remained based in the town until 2009. The firm was acquired by Adidas Group in 2006 who went on to significantly improve the growth and profitability prospects of the brand. According to the Guardian newspaper, rumours of the sale have circulated since September, following news that Reebok sales having declined in 2020 at a faster rate than the core brand. Adidas expects to sell Reebok for around €2 billion (£1.7 billion), having originally paid €3.1 billion for company.
Adidas CEO Kasper Rorsted, said:
The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands. After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other. We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.”
Adidas is expected to reveal its strategy for the next five years to its shareholders at a virtual Investor and Media Day on 10th March 2021.
North Face and Timberland owner, VF Corporation and Chinese competitor Anta Sports have both been reported as potential buyers.