Reebok has a new owner: Adidas sells it to this company

Since the end of last year, after an important fall in sales, Adidas announced its intentions to sell Reebok, a brand that I bought for 3,800 million dollars to compete with Nike in new categories and with a firm that was widely recognized since then.

In this way, last November, various German media claimed that Adidas was planning to part with his Reebok division derived from the "problems" business performance.

Today this is a reality and as indicated from Reuters, Reebok has a new owner.The German brand of the three stripes, sold the aforementioned Aauthentic Brands Groups brand for up to 2.100 million euros (2.460 million dollars), with the intention of focusing on its main brand of sports clothing and accessories.

Although Adidas managed to balance the battle with its main Nike rival in the United States, in reality Reebok's influence on this goal was reduced.Adidas managed to stand Face Nike thanks to collaborations with celebrities such askanye West, Beyonce and Pharrell Williams.

The problems for Reebok tried to be solved around 2016, when Kasper Rorsted assumed the position of CEO of Adidas and set a restructuring plan, which allowed the brand that now says goodbye to the adidas catalog.

However, his performance remained slow and with the arrival of the pandemic the advanced steps simply blurred.

This transaction adds to the past sale of rockport, CCM Hockey and Greg Norman for 400 million euros, which had been part of the original Reebok acquisition.

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With this movement, Reebok joins the Authentic Brands Group (ABG) portfolio, a signature that has managed to make more than 30 brands with a certain renown that are marketed in more than 6 thousand stores.

"This is an important milestone for ABG, and we are committed to preserving the integrity, innovation and values of Reebok, including its presence in physical stores," said Jamie Salter, founder, president and executive director of ABG.

In the midst of this, Adidas has said that the sale of Reebok has no impact on its financial prospects for the current year or its objectives established in the five -year strategy he announced in March.The impact would be reflected until the first quarter of the year when the sum of more than 2 billion dollars finished paying in cash.

With this movement, Adidas would join the brands that are considering making their marks portfolio lighter to deal with the crisis left by the pandemic.

This phenomenon was already foreseen by various specialists.According to a CNN study, big brands seem to be reducing their offer to focus on their key products, in order to optimize their production chains.

The analysis argues that the measure responds to the need to make supply chains more efficient.

In recent weeks, Coca-Cola has become the example that gives face to this trend.The brand's plan was confirmed in the second quarterly report of the firm, in which the brand said it would reduce its portfolio to focus on all those brands that have proven profitable.

“The company is accelerating its strategy to achieve these objectives.This includes focusing investments in a definite growth portfolio by prioritizing the best positioned brands to reach the consumer and share advantages.The company will also rationalize the line of innovation against initiatives that are scalable at regional or global level, as well as maintain a disciplined approach to local experimentation to further strengthen the leader, challenger and explorer framework of the company, ”said the firm inYour report.