PE Firms Interested in Adidas Sale of Reebok that Could Fetch Only $1bn

Offers to buy Reebok started rolling in this week with the licensing company behind Nine West and Frye offering around $1bn for the money-losing sneaker label. The amount is nearly $3bn less than the original acquisition price of $3.8bn in 2005.

Adidas is reportedly ready to begin considering offers next week. Companies interested in the purchase include Chinese groups, Anta Sports and Li-Ning, as well as Korean Fila and American player, Wolverine World Wide which already produces footwear for Harley-Davidson and Caterpillar. Other contenders include, Private TPG Capital, Sycamore Partners, Cerberus Capital Management and Apollo Global Management.

In 2020, Reebok reported a record drop in sales of more than 19 percent, falling to $1.69bn from $3.62bn. Last February, CEO of adidas, Kasper Rorsted said, “After careful consideration we have come to the conclusion that Reebok and Adidas will be able to reach their growth potential by operating independently of each other. We will work diligently over the next few months to ensure a fruitful future for the Reebok brand and the team that supports it.”

Source: Hype Beast