Adidas May Be Preparing Reebok Sale
didas is reportedly set to decide in the coming months if it will sell the Reebok brand, with an internal review in its early stages that could see Reebok sold by March 2021.
The German sportswear giant first bought Reebok for $5 billion in 2006.
German business outlet manager, Magazin, said that VF Corp, owners of North Face and Timberland, is among the parties interested in buying Reebok.
China-based Anta International Group Holdings is said to also be interested.
Following the onset of COVID-19, Reebok’s revenue dropped by 42%, while Adidas fell by 33% in the second quarter of this year.
Reebok was recently also replaced by combat sports brand, Venum, as the exclusive global outfitting and apparel partner of the UFC; in a deal beginning April 2021.
The company will continue serving as the official footwear provider of the UFC until the end of next year.
The existing Reebok agreement is worth $70 million over a period of six years, starting mid-2015 and ending March 2021.
The UFC deal includes yearly fixed payments which increase every year, and shared revenue with apparel sold.