Private Equity Firms Consider Reebok Purchase

Two private equity firms are interested in buying Reebok, according to a report by Financial Times. 

Remind me: In October, German business publication Manager Magazin reported that Germany-based Adidas was looking to sell Reebok, a brand known for its affiliation with CrossFit. 

• Adidas bought Reebok for $3.8 billion in 2005, in an attempt to compete with American market leader Nike. 
• The sale comes after four years of attempts to revitalize Reebok. According to the Financial Times, Reebok accounted for 7% of Adidas’ total sales in 2019, and the Boston-based brand saw sales drop 42% in the second quarter of 2020.
• Sports Pro Media notes that these numbers have prompted Adidas stockholders to call for CEO Kasper Rørsted to consider selling Reebok before the company’s release of a five-year plan, which is expected in March of 2021. 
• When word of a potential sale got out, Adidas shares rose around 3.4%. 

Financial Times calls the partnership between Reebok and Adidas one of the most “ill-suited pairings in the history of the sports gear industry.”

The details: Adidas has not yet confirmed the rumors of a Reebok sale, but a source from Financial Times reports that two private equity firms, Premeria and Triton are in “early, exploratory stages” of purchase.

• Premeria, based in London, owns apparel brands Dr Martens and Reformation. Triton, according to Sports Pro Media, is invested in a variety of European companies in manufacturing, healthcare, and business. Both declined to comment to the Financial Times.
• In their original report, Manager Magazin noted that brands interested in buying Reebok included VF Corp., owner of Timberland and North Face, and China’s Anta International Group Holdings.