adidas plans to sell underperforming Reebok!

 

German sportswear manufacturer adidas is set to begin formal process to sell or spin-off its underperforming American sports brand Reebok.

More details of its plans on the same will be, reportedly, revealed on 10 March, when adidas is expected to publish its 2020 results as well.

The decision has come 15 years after the German sportswear maker had acquired Reebok for US $ 3.8 billion with the intent to compete with Nike.

Over the last few years, Reebok’s performance has been so slow and disappointing that there have been repeated calls from investors to sell the brand. COVID-19-induced store closures further dented the performance of the brand.

Stating on the sale prospects, John Kernan, Cowen Analyst had recently said that Reebok may end up getting anything between US $ 1.2 billion and US $ 1.8 billion.

Meanwhile, Kasper Rorsted, CEO, adidas, has said that both adidas and Reebok will be able to importantly better realise their growth potential independent of each other.

Reebok is expected to attract interest from several sports firms across the globe, especially Asia. However, not much information has been shared regarding the sale or spin-off process.

adidas is, reportedly, second largest sportswear manufacturer in the world and generated €21.915 billion in 2018.

 

 

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