Private Equity Firms Consider Reebok Purchase
Two private equity firms are interested in buying Reebok, according to a report by Financial Times.
- Adidas bought Reebok for $3.8 billion in 2005, in an attempt to compete with American market leader Nike.
- The sale comes after four years of attempts to revitalize Reebok. According to the Financial Times, Reebok accounted for 7% of Adidas’ total sales in 2019, and the Boston-based brand saw sales drop 42% in the second quarter of 2020.
- Sports Pro Media notes that these numbers have prompted Adidas stockholders to call for CEO Kasper Rørsted to consider selling Reebok before the company’s release of a five-year plan, which is expected in March of 2021.
- When word of a potential sale got out, Adidas shares rose around 3.4%.
Financial Times calls the partnership between Reebok and Adidas one of the most “ill-suited pairings in the history of the sports gear industry.”
The details: Adidas has not yet confirmed the rumors of a Reebok sale, but a source from Financial Times reports that two private equity firms, Premeria and Triton are in “early, exploratory stages” of purchase.
- Premeria, based in London, owns apparel brands Dr Martens and Reformation. Triton, according to Sports Pro Media, is invested in a variety of European companies in manufacturing, healthcare, and business. Both declined to comment to the Financial Times.
- In their original report, Manager Magazin noted that brands interested in buying Reebok included VF Corp., owner of Timberland and North Face, and China’s Anta International Group Holdings.