Report: Adidas Is Preparing To Sell Struggling Reebok Brand
Adidas plans to complete the sale by March 2021, the report said, without naming sources.
The company reportedly has an internal team working on the deal who have signed confidentiality agreements.
While Adidas CEO Kasper Rorsted had hoped to offload Reebok for around €2 billion ($2.4 billion) before the pandemic, the company may have to settle for less now, the report added.
According to Manager Magazin, parties interested in buying Reebok include VF Corp., which owns the Timberland and North Face brands, as well as China’s Anta International Group Holdings.
Adidas’ shares jumped by around 3.2% following the report.
An Adidas spokesperson told Bloomberg that the company doesn’t comment on market rumors.
Boston-headquartered Reebok was the world’s third-largest sporting goods brand before it was acquired by Adidas for $3.8 billion in 2006. Adidas had bought Reebok to better compete with its American rival and market leader Nike. A slump in Reebok’s sales in recent years, however, has seen activist investors demand that Adidas sell the loss-making brand.