Adidas sells its most expensive mistake: who will buy Reebok?

Adidas sells its most expensive mistake: who will buy Reebok?

Anta Sports and VF Corp put Reebok in their sights. The initial valuation is approximately 2.4 billion dollars, negotiable. In other words, Adidas (the current owner) could settle for a smaller sum to “liquidate” what many call “its most costly mistake”. The closing is expected by March 2021. The German group had bought Reebok in 2005 for 3.8 billion dollars.

Adidas’s most expensive mistake

Manager Magazin first broke the news that Adidas would begin exploration for the sale of Reebok. It called it “the most expensive mistake in the history of the company” referring to the decision of the German giant to acquire the brand 5 years ago. The subsequent reorganisation and the investments made did not give the desired results. Now, in times of the pandemic, Adidas CEO Kasper Rorsted would have raised the white flag and decided to sell. According to Bloomberg, Rorsted has long been pondering the sale of Reebok. To the point that, before the pandemic, it would have sold it for 2.4 billion dollars. Now, however, it seems he would settle for a lower amount.

Reebok put in the sights

So who put Reebok in the sights? There are two possible suitors. The first could be VF Corp (owner of Timberland and Vans among others). Its CEO, Steve Rendle, admitted in June that he had undertaken the analysis of possible acquisitions in sectors such as athleisure, outdoor or activewear. The second would be the Chinese giant Anta (owner of Fila) which is in full expansion after taking control of Amer Sports in 2019.

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