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After almost a year of speculation, adidas has placed Reebok on the market.
In 2006, the American sportswear giant was acquired by adidas for $3.8B in one of the largest mergers in the apparel industry. The move was initially seen as adidas’ foray into the American market. Fast forward 15 years, adidas has decided to dispose of the brand due to declining earnings and decreasing cultural relevancy.
Currently, Reebok is valued at $1.2B, a significant drop-off from its peak valuation. Companies likely to bid include Asia’s FILA, ANTA Sports, and Li-Ning, along with the U.S. based Wolverine. Prominent financial institutions, including private equity firms Apollo, Cerberus, Sycamore Partners, and TPG are looking to acquire the cheaply valued firm. Likely, all of the bidders listed above see tremendous turn-around potential for the once prominent brand.
With more news to release in the future, it’ll be of interest to see the direction Reebok takes once under the umbrella of another company.
