Reebok is considered the problem child of Adidas. But the Franks have now sold the American brand. Photo: IMAGO / Dean Pictures IMAGO / Dean Pictures Adidas sells its US -Mark Reebok to Authentic Brands Group (ABG). 16 For years the American brand belonged to the company from Herzogenaurach in Franconia. Some refer to what happened between Adidas and Reebok as an adventure. One that is now coming to an end. On the other hand, Adidas CEO Kasper Rorsted finds more conciliatory words: “We have always valued Reebok and are grateful for the contributions that the brand and the team behind it have made to our company,” he said on Thursday.
Rorsted also said that Reebok is well positioned to be successful in the long term – but no longer under Adidas . The German sportswear manufacturer Reebok is selling for 2.3 billion dollars. Most of the money is to be paid out in cash and distributed to Adidas shareholders. Analysts assume that the sales process will end at the end of the first quarter 2022 will be completed.
Reebok has been stumbling for years That the purchase price is so high surprises many in the industry. In the past few months there was speculation about a purchase price of around one billion euros. It is interesting that the amount that Adidas Reebok is now giving away for is higher than the value Reebok is on the Adidas balance sheet. In front 16 years ago, Adidas bought the company for more than 3 billion euros. With the purchase of the US brand, the Swiss franc wanted to move closer to the world market leader Nike.
But nothing came of the plan. The Reebok brand has been stumbling for years . The share of the Group’s total sales has evaporated since the purchase and was around ten percent in the end. This was also due to the fact that Adidas strengthened its core markets in the USA and concentrated less and less on the Reebok brand. The goal of Adidas is now to concentrate even more on the actual brand and to increase the profit from Adidas itself.
With Reebok, Authentic Brands Group is adding another well-known, but struggling brand to its portfolio. The ABG already includes 30 other brands, including Barneys New York and Brooks Brothers. Also Forever 21 and Sports Illustrated belong to the group. ABG has already bought several companies this year. ABG chief Jamie Salter said of the deal that it was an important milestone on the path to growth and that his company wanted Reebok to exist as a separate entity. Salter says Reebok is “one of the best sportswear and athletic footwear brands in the world,” comparing them to Nike in importance.
ABG’s licensing business The ABG not only unites companies under one roof, the group also holds the trademark rights to Elvis Presley and Marilyn Monroe. ABG describes itself as a brand developer, a marketing company and an entertainment company. ABG buys up the intellectual property of other brands or these completely, develops the brands it has bought and relies on breathing new life into them through a cross-industry scale effect.
Salter had the company in the year 2010 – at the same time he is a key figure with more than 30 years of management experience. He once described his business model as follows: ABG does not manage any shops, goods or supply chains. Rather, you license all these activities – and earn money for these licenses.
“We don’t produce anything,” says Salter. “We run a licensing business and only take care of the brand identity and marketing.” Overall, the ABG works with more than 700 partners worldwide. The group sees itself as a flywheel of brand development. One of her strengths is in the area of social media marketing. The ABG unites 230 Social media accounts under one roof. She is considered a professional when it comes to branded content and digital distribution. Through the purchases of the group, the ABG unites more than 16. 000 trademarks protected by trademark law among themselves. Reebok and the associated brands will soon be the next of these.