Want more from Front Office Sports
in your search results?
Authentic Brands Group announced its plans to purchase Reebok for $2.46 billion in August, and ABG CEO Jamie Salter expects its revenue to grow from $4 billion to $10 billion within five years.
Salter told Axios the sportswear brand will “focus very big on the classic entertainment fashion side and the other 50% on the athletic side” and will let “Reebok be Reebok.”
Adidas sold Reebok for $1.34 billion less than its purchase price of $3.8 billion in 2006.
- From 2006 through 2010, Reebok’s revenue declined from 4.7% of Adidas’ total revenue to 2.6%.
- At the end of 2011, the Federal Trade Commission forced Adidas to pay its customers $25 million for “deceptive marketing tactics.”
- Reebok turned profitable in 2018 and saw sales growth in 2019 until the pandemic contributed to a 22% decline in revenue.
Next Steps
Authentic Brands Group purchased a 55% stake in the Beckhams’ DB Ventures for $271 million earlier this month and is reportedly looking to expand in the kids’ sector.
The company planned to go public in late 2022 at a $10 billion valuation until a private equity offer halted its plans, and now ABG is aiming for an IPO as late as next year.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
