German sportswear firm Adidas completes divestiture of Reebok to ABG

02 Mar '22

1 min read

Pic: XanderSt / Shutterstock.com

German sportswear company Adidas has formally completed the divestiture of Reebok to Authentic Brands Group (ABG). In several markets, Adidas will continue to operate the business on behalf of ABG during a transition period, following which the Reebok business will fully transfer to ABG’s operating partners via a series of deferred local closings.

The deferred local closings will take place later this year and in early 2023. In-line with the definitive agreement signed in August 2021 and as a result of the formal completion of the divestiture, Adidas has now received the majority of the total consideration of up to €2.1 billion in cash, with the remainder comprised of deferred and contingent consideration, Adidas said in a media release.

Against this background, Adidas will launch a new share buyback programme to return the cash proceeds from the Reebok divestiture to its shareholders. Starting in mid-March 2022, the company intends to repurchase own shares in an amount of up to €1.5 billion until the end of the third quarter 2022.

The decision to repurchase shares will be in addition to the company’s regular buyback activities.

Fibre2Fashion News Desk (KD)

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