Adidas begins formal sell process for Reebok brand
17 Feb 2021
As part of the development of its new five-year strategy, Adidas begin a formal process aimed at divesting Reebok. Going forward, the company said that it intends to focus its efforts on further strengthening the leading position of the Adidas brand in the global sporting goods market.
“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,” said Adidas CEO Kasper Rorsted.
The company is going to report Reebok as discontinued operations from the first quarter 2021 onwards. The company added that more details on Adidas’ strategic business plan until 2025 will be unveiled at the company’s virtual investor and media day on March 10, 2021.
Adidas acquired Reebok in 2006. The company added that as a result of the successful implementation of the turnaround plan “Muscle Up” initiated in 2016, the brand was able to significantly improve its growth and profitability prospects, laying the foundation to unleash its full potential in the highly attractive global sporting goods market.