Adidas sells Reebok brand to Authentic Brands Group in $2.5 billion deal

The Reebok deal, which will be closed by the first quarter of 2022, marks an important milestone in the growth of Authentic Brands Group, the company’s Chief Executive Officer Jamie Salter said in a statement. 

New Delhi: Adidas AG is all set to sell Reebok to Authentic Brands Group Inc. in a deal that could be at about 2.1 billion euros ($2.5 billion). The deal will help US-based Authentic Brands to include another well-known brand into its portfolio of consumer companies.  According to a report by Bloomberg, the deal, which will be closed by the first quarter of 2022, marks an important milestone in the growth of Authentic Brands Group, the company’s Chief Executive Officer Jamie Salter said in a statement.  “We are committed to preserving Reebok’s integrity, innovation and values -- including its presence in bricks and mortar," he was quoted as saying. A majority part of the deal will be closed in cash while the remaining is expected to be received by Adidas as deferred and contingent consideration. The cash will mostly be used to pay the company’s shareholders.