German sportswear giant Adidas on Monday said that, as part of its new five-year strategy, it has begun to review strategic alternatives for Reebok, which it acquired in 2006 for $3.6 billion.
“These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company,” Adidas said in a statement. “A decision will be announced on March 10, 2021, when the company’s new strategy is officially presented.”
Authentic Brands Group has been mentioned as a possible acquirer of the brand, reported WWD, with a source close to ABG confirming that the company is definitely interested in talking to Adidas about potentially adding the brand to its growing portfolio,
The BBC reported that Timberland parent company VF Corp., as well as private equity firm Permira, owner of Dr.Martens, have emerged as potential buyers.
In its statement, Adidas noted that, as a result of its successful “Muscle Up” turnaround plan, which it initiated in 2016, Reebok significantly improved its profitability and returned to the profit zone in 2018, two years earlier than initially forecast.
In 2019, Reebok also returned to the growth path, according to Adidas. Driven by double-digit growth in its home market North America, global Reebok sales increased by 2% on a currency-neutral basis compared to the previous year.