Adidas to Buy Reebok
Frankfurt, Germany, German sporting goods maker Adidas-Salomon is buying Reebok, its U.S. rival, for $3.8 billion (3.1 billion euro). Adidas is number two in the sporting goods industry behind Nike. Reebok is third. Adidas hopes to close the gap between its sales and Nike’s with the acquisition. Adidas expects its net income to rise at least 10% per year in the medium term, after the Reebok takeover.
Adidas said that Paul Fireman, Reebok chairman and CEO, would continue running the Reebok brand, describing the takeover as friendly. Adidas still needs the approval of Reebok shareholders and antitrust authorities, but the company expects to finalize the deal in the first half of 2006.
Ahold Acquires Czech Supermarkets
Zaandam, Netherlands, Ahold announced it has reached an agreement to acquire as many as 67 Julius Meinl supermarkets in the Czech Republic. The acquisition will increase Ahold’s store count in that country to about 300. The Julius Meinl stores will be rebranded as Albert, the banner under which Ahold operates its supermarkets in the Czech Republic, Slovakia and Poland.
Pantry Expands Presence in Alabama
Sanford, N.C., The Pantry has signed a definitive agreement to acquire 13 convenience stores in Alabama from Chatham Oil Company, which has been operating the stores under the Speedmart Food Stores banner. The acquisition strengthens The Pantry’s position in Alabama, where it currently operates 25 stores. The Pantry operates 1,386 stores in 11 states under a number of banners.