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Adidas-Salomon AG closes acquisition of Reebok International
31 Jan '06
3 min read
The group will have more complete product offerings in key sporting categories, extended geographic reach, a more balanced sales profile, and enhanced research and development capabilities.
Adidas-Salomon AG expects that the transaction will be accretive to earnings in the 2007 fiscal year. It also expects to realize substantial operational synergies, including cost savings of approximately €125 million ($150 million) by the third year after closing. In addition, the strong operating cash flow of the combined company will provide financial strength to reduce debt and continue funding established growth initiatives.
"Over the years, we at adidas have achieved success by building a consumer-oriented approach to the market, focusing on profit-driven performance metrics, and maintaining a strong commitment to continually generating free cash flow.
With our transaction complete, these principles will continue to guide us. I am confident that with Reebok we can attain even higher performance levels for our company and our athletes around the world," Herbert Hainer continued.
The Adidas Group is one of the global leaders within the sporting goods industry and offers a broad range of products with brands such as adidas, Reebok and TaylorMade in its portfolio.
Headquartered in Herzogenaurach, Germany, the new group has more than 25,000 employees and sales of around €9.5 billion.
Adidas-Salomon AG expects that the transaction will be accretive to earnings in the 2007 fiscal year. It also expects to realize substantial operational synergies, including cost savings of approximately €125 million ($150 million) by the third year after closing. In addition, the strong operating cash flow of the combined company will provide financial strength to reduce debt and continue funding established growth initiatives.
"Over the years, we at adidas have achieved success by building a consumer-oriented approach to the market, focusing on profit-driven performance metrics, and maintaining a strong commitment to continually generating free cash flow.
With our transaction complete, these principles will continue to guide us. I am confident that with Reebok we can attain even higher performance levels for our company and our athletes around the world," Herbert Hainer continued.
The Adidas Group is one of the global leaders within the sporting goods industry and offers a broad range of products with brands such as adidas, Reebok and TaylorMade in its portfolio.
Headquartered in Herzogenaurach, Germany, the new group has more than 25,000 employees and sales of around €9.5 billion.
Adidas-Salomon AG
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