Adidas sells Reebok, which was struggling

Sixteen years after acquiring Reebok for $4 billion, German sportswear giant Adidas is selling it for a little more than half that to Authentic Brands Group, a voracious acquirer of struggling brands.

In the past few years, Authentic has acquired Brooks Brothers and Forever 21, adding to a stable that includes Sports Illustrated. The acquisition of Reebok for 2.1 billion euros, or $2.5 billion, comes as Authentic is preparing to go public.

“We’ve had our sights set on Reebok for many years,” Authentic CEO Jamie Salter said in a statement. “Reebok not only holds a special place in the minds and hearts of consumers around the world, but the brand also has expansive global distribution.”

Reebok operates in 80 countries, with roughly 70% of its business outside the United States and Canada. Its world headquarters will remain in Boston.

When Adidas acquired Reebok in 2005, it hoped Reebok could recapture the glory of its 1980s heyday and create a formidable rival to Nike. But the brand got lost inside the broader Adidas empire and struggled to connect with consumers. Reebok sales fell 19% in 2020 to 1.41 billion euros, from 1.75 billion euros the year before.

Shaquille O’neal, whose shoe line with Reebok was introduced in 1992 and who sold a stake in his own brand to Authentic Brands in 2015, celebrated the sale. “It’s a dream come true to welcome this legendary brand to the family,” he said in the statement from Authentic.