On Thursday, Adidas announced plans to sell Reebok to Authentic Brands Group.
Authentic Brands Group will pay "up to €2.1 billion," or around $2.5 billion — the majority in cash — for the brand, according to a press release. The deal is expected to close in the first quarter of 2022.
The German sportswear company first revealed its intentions to divest from Reebok, which it has owned since 2006, in February, following an internal business review and the brand's underperformance. Authentic Brands Group was shortlisted as a potential buyer earlier this summer.
"It's an honor to be entrusted with carrying Reebok's legacy forward," Jamie Salter, the founder, chairman and CEO of Authentic Brands Group, said in a statement. "This is an important milestone for ABG, and we are committed to preserving Reebok's integrity, innovation and values — including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand's success."
Authentic Brands Group — which filed for an IPO in July — has been on a fashion buying spree, scooping up Eddie Bauer, Brooks Brothers and Lucky Brand through the Sparc Group (a joint venture with Simon Property Group) in the past year and recently beginning the process to acquire IZOD, Van Heusen, Arrow and Geoffrey Beene from PVH. It already owns Forever 21, Barneys New York, Hervé Leger, Juicy Couture, Nine West, Aéropostale, among many others.
Kasper Rorsted, CEO of Adidas AG, said of the deal: "Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success."