On March 1, 2022, American brand management company Authentic Brands Group (ABG) announced it completed its acquisition of fitness footwear and clothing manufacturer Reebok from German sportswear manufacturer Adidas.
ABG’s portfolio consists of 63 fashion brands, clothing manufacturers, retailers, such as Aéropostale, Forever 21, and Nautica. It also owns named athletes and celebrity brands like basketball player Shaquille O’Neal, actress and icon Marilyn Monroe, and singer Elvis Presley. According to Front Office Sports, ABG purchased Reebok for reported $2.46 billion — ABG’s largest acquisition since its founding in 2010. Per Footwear News, Adidas purchased Reebok in 2005 for $3.8 billion.
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At the time of this article’s publication on March 1, 2022, Adidas’ stock price is up more than 30 percent over the past five years. Aside from the market dip during the early stages of the COVID-19 pandemic in March 2020, its stock price has not fallen below triple digits since December 2018. ABG is not a publicly traded company. According to CNBC, ABG was valued at $12.7 billion as of November 2021.
Authentic Brand Group Buys Reebok
According to ABG’s press release, the definitive agreement to purchase Reebok from Adidas was announced in August 2021. ABG is forming the Reebok Design Group (RDB) in partnership with SPARC Group, a global fashion design manufacturer. RDB will continue to produce athletic footwear such as the Nano and Floatride models. According to the President of RBD, Matt O’Toole:
2021 was a banner year for Reebok…a credit to…the iconic silhouettes that immortalize the brand. Under new ownership, we have an exciting opportunity to reclaim our place in the market.
Reebok was the exclusive title sponsor of the CrossFit Games for 10 years. Their deal expired in 2020, when Reebok chose not to renew. NOBULL has since replaced it as the title sponsor of the CrossFit Games.
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Reebok was established in 1958 in Great Britain as a companion company to sporting goods company J.W. Foster and Sons. Reebok was acquired by Adidas in 2005, with its headquarters located in the Seaport District of Boston, MA.
Featured image: @reebok on Instagram