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