Adidas is selling Reebok to focus on its own brand
“Reisbach and Adidas will be able to better realize their growth potential independently of each other,” said Kaisbor Rorstad. “We will work diligently to ensure a successful future for the Reebok brand and the team behind it in the coming months,” he said.
But in recent years the brand has underperformed and lost market share. According to financial statements, it now accounts for only 7% of Adidas sales, up from about 18% in 2010.
After taking over as CEO of Adidas, Rorstad launched a turnaround plan in 2016 that returned Reebok to profitability in 2018 and saw it land support deals with celebrities such as Ariana Grande and Cardi B.
Adidas said it would focus efforts to strengthen its brand in the global sporting goods market. “The long-term growth opportunities in our industry are highly attractive, especially for prestigious sports brands,” Rorstad said.
Authentic Brands Group (ABG) and Anta Sports of China could also be potential sitovers. ABG owns the commercial efforts of basketball great Shakeel O’Neill. O’Neil reportedly said in 2019 that he would love to be a part of Reebok.
Adidas, which acquired Reebok in 2006 for $ 3.8 billion, will report the brand as “discontinued operations” from the first quarter of 2021.