Adidas to sell Reebok business

22 October 2020 - 14:56
By Reuters
Picture: REUTERS
Picture: REUTERS

German sportswear company Adidas is planning to sell its Reebok division, Germany's manager magazin reported on Thursday, as the group seeks to put an end to the ill-fated investment in the U.S.-focused brand.

Adidas plans to complete the sale by March 2021. The report said that Adidas had written down the book value of Reebok by nearly half to $995 million since 2018 but did not specify a possible sale price.

The magazine said VF Corp and China's Anta Sports are considered to be among the interested parties.

Adidas declined to comment.

Shares in Adidas jumped on the news reflecting repeated calls by investors to dispose of Reebok, impatient with the lack of progress to turn around the business.

Bought by Adidas in 2005 for $3.8 billion, Reebok's sales fell 44% in the second quarter to $270 million, mainly due to its large exposure to the U.S. market, causing its parent to take impairment charges in the period.