According to a report, Adidas wants to separate from its daughter Reebok. The sale should be completed in the spring. The sporting goods manufacturer’s share price climbed to a four-week high.
According to a magazine report, Adidas wants to part with the US brand Reebok after 14 years. The decision to sell the long-time problem child had been made, reported the “Manager Magazin” on Thursday in its new issue.
CEO Kasper Rorsted wants to complete the transaction by March 2021. The Franconian sporting goods company had postponed the announcement of its strategy for the next five years under the impression of the Corona crisis to spring. “We do not comment on market rumors,” said an Adidas spokeswoman for the report, a t-online inquiry remained unanswered until the end.
The prospect of a sale was well received on the stock market: Adidas shares climbed to the top of the Dax and gained up to 3.2 percent to a four-week high of 283.40 euros.
No “profitable growth” at Reebok
With the focus on the fitness segment, Reebok had reached the breakeven point. But the “profitable growth” demanded by Rorsted largely failed to materialize. In 2019, the brand had grown by two percent, significantly weaker than Adidas itself. The Adidas boss had therefore already verbally distanced himself from Reebok in March. “Reebok will find its place in the new strategy – or it will not,” he said at the time.
Rorsted’s predecessor Herbert Hainer bought the company in 2006 for 3.1 billion euros in order to compete with larger US rival Nike in its home market of America. Most recently, Reebok accounted for less than a tenth of Adidas sales. After several write-downs, the brand was still listed in Adidas’ books at 842 million euros at the end of 2019.
There should already be initial prospects for Reebok
According to “Manager Magazin”, the US clothing group VF Corp (“Timberland”, “The North Face”) and the Chinese Anta Sports Products could be interested in a takeover of Reebok, to which the Italian brand Fila and the Finnish Amer Group ( “Wilson”, “Salomon”) belong.
Before the Corona crisis, Adidas had hoped for revenue of a good two billion euros. “But Rorsted could be satisfied with less,” said the magazine report.