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Adidas to jettison Reebok business: Manager Magazin
Posted on Thursday, 22 October 2020 15:18
German shoes, clothing and accessories designer Adidas intends to offload its US-based Reebok business, according to Manager Magazin.

Without identifying its sources, the publication said the Herzogenaurach-headquartered firm hopes to complete a deal by March of next year.

The magazine stated that VF Corp, which owns the Timberland and North Face brands, and Anta Sports are being considered as potential acquirors.

At present, no financial details of the potential transaction have been disclosed and Adidas has so far declined to comment.

The company has owned Reebok since January 2006; it paid USD 3.80 billion to acquire the business, equating to an offer price of USD 59.00 per share in cash.

Reuters picked up on news of the potential divestment and noted that investors in Adidas have repeatedly called for the company to divest the business as it struggled to turn around its declining sales.

Shares in the vendor closed at EUR 274.70 on the Frankfurt Stock Exchange on 21st October, the last trading day prior to the news.

Following the Manager Magazin report, the company was trading at EUR 283.30, as of 14:31 on 22nd October.

In the first half of 2020, Reebok recorded a 27.0 per cent decline in revenue, while the drop for Adidas as a whole was 26.0 per cent.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 375 deals targeting apparel manufacturers announced worldwide during 2020 to date.

Of these, the most valuable was worth USD 1.47 billion and took the form of an acquisition as Permira Advisers bought a majority stake in Italy-headquartered fashion designer and clothing manufacturer Golden Goose in mid-June.

Other companies in the sector to have been targeted in the year to date include Centric Brands, Gymshark, Descente and Under Armour.

© Zephus Ltd