Reebok is officially under the umbrella of Authentic Brands Group, as the conglomerate looks to take the sneaker and apparel brand to new heights.
The acquisition closed on Tuesday, valuing Reebok at around $2.5 billion. Authentic Brands acquired it from Adidas, which purchased Reebok in 2006 for $3.8 billion. Adidas announced a $1.7 billion share buyback program on Tuesday related to the sale.
Authentic Brands said it will “preserve Reebok’s DNA” while exploring new opportunities for the company.
- It will form the Reebok Design Group in partnership with SPARC Group LLC, a venture of Authentic Brands and Simon Property Group.
- Authentic Brands CEO Jamie Salter said he expects Reebok to bring in $6 billion in revenue next year, up from its current $4 billion, and $10 billion in five years.
Authentic Brands said Reebok will be its “global brand hub for the design, development, and innovation for footwear and apparel servicing partners around the world.”
Authentic Brands also owns Sports Illustrated, tennis equipment maker Prince, and clothing brands including Nautica, Above the Rim, Airwalk, Brooks Brothers, and Juicy Couture, as well as the personal brands of David Beckham, Shaquille O’Neal, and Muhammad Ali.
Authentic Brands plans to modernize Reebok by accepting crypto payments and producing NFTs later this year.
It will also look to grow Reebok’s presence in China, South Korea, and Latin America.