• Loading stock data...
Friday, November 22, 2024

ABG Drops $1B Bid to Acquire Reebok

  • Authentic Brands Group has withdrawn its bid to acquire Rebook.
  • The retail conglomerate offered $1 billion to purchase the brand from adidas.
Reebok/Design: Alex Brooks

Authentic Brands Group has withdrawn its bid to acquire Rebook from adidas, according to the New York Post. 

A retail conglomerate with 30 brands across 5,950 brick-and-mortar stores, ABG made an offer in May to purchase Reebok for $1 billion.  

Adidas acquired Reebok for $3.8 billion in 2005. 

The potential acquisition reportedly dissolved due to adidas’ demands that ABG operate Reebok as a standalone business, among other stipulations. 

ABG planned to integrate Reebok’s U.S. business with Sparc Group, its joint venture with real estate investment trust Simon Property. Sparc operates Aeropostale, Brooks Brothers, Forever 21, and Nautica. 

Reebok has been losing momentum in a sportswear market expected to reach $247.4 billion by 2027

  • The brand suffered more than $100 million in losses in 2020, preventing potential buyers from borrowing in order to purchase
  • It generated $1.5 billion in revenue last year, down from $1.8 billion in 2019
  • It failed to renew its apparel deal with the UFC after a six-year partnership

ABG is preparing for an initial public offering with a target valuation of about $10 billion, according to CNBC. 

Adidas will wrap up its next round of bids for Reebok on Aug. 2, with Chinese sportswear manufacturers Anta Sports and Li Ning said to still be in the running

Buyout firms Advent International, Cerberus Capital Management, CVC Capital Partners, and Sycamore Partners have also expressed interest in purchasing the sportswear brand.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Nov 16, 2024; Washington, District of Columbia, USA; Washington Spirit forward Trinity Rodman (2) celebrates after defeating NJ/NY Gotham FC in a 2024 NWSL Playoffs semifinal match at Audi Field. Mandatory Credit:

The Washington Spirit’s Business Makeover Carried Them to the Finals

The team’s return to the NWSL championship looks a lot different from 2021.
Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.
Nov 13, 2024; New York, New York, USA; New York Knicks guard Josh Hart (3) reacts after fouling Chicago Bulls guard Coby White (not pictured) during the second half at Madison Square Garden.
opinion

NBA Ratings Rorschach Test: Buy the Dip

Was it the election? Too many threes? Lack of storylines?
podcast thumbnail mobile
Front Office Sports Today

What’s Next for Hapless Jets?

0:00

Featured Today

Executive Decision: When Richard Nixon Named a College Football Champion

In 1969, the 37th president unilaterally named the winner of the season.
November 15, 2024

How Women’s Sports Could Change in the Next Trump Era

Under the president-elect, Title IX could change drastically.
Former President Donald Trump waves to the crowd as he exits the putting green with his aide Walt Nauta, left, during the final round of the LIV Golf Bedminster golf tournament at Trump National Bedminster on Sunday, Aug. 13, 2023.
opinion
November 9, 2024

Trump Win Puts Sports Back in the White House

With Trump back in the White House, sports get more political again.
Members of the NY Giants run onto the field to start the game between the New York Giants and the Washington Commanders at MetLife Stadium in East Rutherford on Sunday, Nov. 3, 2024.
November 8, 2024

The NFL Is Becoming the League With No Borders

Where will the NFL go next? International expansion will only get bigger.
Nov 5, 2023; New York, NY, USA; Hellen Obiri of Kenya celebrates after finishing first place in the NYC Marathon.

On Brand Posts Record Sales, Says It’s No Longer ‘Just a Running..

The Swiss company credited its full-price strategy for its stellar quarter.
November 7, 2024

Under Armour Turnaround Underway, Raises Profit Guidance

CEO and founder Kevin Plank returned to lead the company in April.
April 13, 2019; Oakland, CA, USA; Detail view of Anta shoes worn by Golden State Warriors guard Klay Thompson (11) during the second quarter in game one of the first round of the 2019 NBA Playoffs against the LA Clippers at Oracle Arena.
November 8, 2024

Nike and Adidas Are Losing Sportswear Share in China

Chinese brands like Anta and Li-Ning are taking Nike’s share of the market.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Brooks Running posted positive numbers in Q1 of 2023.
November 2, 2024

Brooks Running Is Having Its Best Year Ever

Brooks opened its first store in Shanghai as it pushes into China.
October 30, 2024

Lululemon-Fanatics Collab With NHL Sees ‘Explosive’ First-Day Sales

The premium collection made up 80% of all NHL merch sales.
October 29, 2024

World Series Merch Hits Record Highs Despite Dominant Dodgers

Single-day sales records were set at both Dodger Stadium and Yankee Stadium.
Oct 26, 2022; San Francisco, CA, USA; A detailed view of Adidas Yeezy Boost 350 V2 "Bred" shoes worn by Arizona State Sun Devils coach Bobby Hurley during Pac-12 Media Day at Pac-12 Network Studios.
October 29, 2024

Adidas and Ye Officially Finalize Their Divorce

The company said the two sides reached an out-of-court settlement.