Herzogenaurach, Germany – Adidas has announced that it plans to divest the Reebok brand. It acquired the UK-founded business in 2006, and it is now headquartered in Boston, Massachusetts.
The planned divestiture is part of the company’s new five-year strategy, and further details will be announced in March. The company paid €3.1bn for Reebok, but the brand has been struggling, and it is expected to be sold at a loss.
‘After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realise their growth potential independently of each other,’ said CEO Kasper Rorsted. ‘We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.’