Reebok Sold to Authentic Brands Group for $2.5B
After months of being up for sale, Adidas has agreed to sell Reebok to Authentic Brands Group (ABG) for up to $2.5 billion. We first reported on Adidas intent to sell back in October 2020.
- Adidas bought Reebok for $3.8 billion in 2005, in an attempt to compete with American market leader Nike.
- The deal is expected to finalize in the first quarter of 2022, according to Yahoo Finance.
Who’s ABG? Authentic Brands Group owns Sports Illustrated and other sports apparel companies like Prince Sports, Tapout and Volcom, as well as fashion brands Nine West, Brooks Brothers, Aeropostale and IZOD.
- ABG is preparing an initial public offering (IPO) with a valuation of around $10 billion, according to CNBC.
What does this mean for CrossFit? Back in March, Reebok’s president Matt O’Toole reiterated to Morning Chalk Up their commitment to the CrossFit community saying, “make no mistake, Reebok remains committed to supporting the athletes, affiliate partners, and the global CrossFit community.”
- O’Toole: “This is a community that we’ve believed in since day one, and we have no plans to walk away from them.”
- Reebok has also recently refilled their athlete roster in the last few months, adding Christian Harris, Amanda Barnhart, Fee Saghafi, Saxon Panchik and Haley Adams.
Reading between the lines: We wouldn’t expect much to change to be honest. Reebok has squarely transitioned to a fitness and training brand over the past two years in lieu of competing in the big four sports. Their flagship Nano has been dubbed the Official Shoe of Fitness. Without specific numbers, it’s hard to say for certain, but Reebok remains a significant power player in CrossFit and the training category overall. We wouldn’t go to Vegas to take any bets on that changing anytime soon.