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Adidas-Salomon & Reebok BOD declares agreement to create €9 bn
03 Aug '05
8 min read
Herzogenaurach based footwear, apparel and accessories maker of adidas-Salomon AG and footwear maker Reebok International Ltd's BOD has decided unanimously approved a definitive agreement under which adidas-Salomon AG would acquire all of the outstanding shares of Reebok for U.S. $59.00 per share in cash. The offer price represents a premium of 34.2 percent over the closing price of Reebok's stock on August 2, 2005. The transaction value is approximately €3.1 billion (U.S. $3.8 billion) including the assumption of net cash of €69 million (U.S. $84 million).
The combination of adidas and Reebok accelerates the adidas Group's strategic intent in the global athletic footwear, apparel and hardware markets. The new Group will benefit from a more competitive platform worldwide, well defined and complementary brand identities, a wider range of products, and an even stronger presence across teams, athletes, events and leagues. The new adidas Group has pro forma aggregate 2004 revenues of €8.9 billion (U.S. $11.1 billion).
“The announcement represents a major strategic milestone for their Group,” said adidas-Salomon Chairman and CEO Herbert Hainer. “This is a once-in-a-lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry. adidas-Salomon and Reebok are energetic and growing companies with a shared commitment to innovation, sport performance and sport lifestyle.
Together, they will expand their geographic reach, particularly in North America, and create a footwear, apparel and hardware offering that addresses a broader spectrum of consumers and demographics. With Reebok, they are advancing their position on the playing field of the sporting goods industry and are improving our financial strength to drive increased shareholder value.”
The combination of adidas and Reebok accelerates the adidas Group's strategic intent in the global athletic footwear, apparel and hardware markets. The new Group will benefit from a more competitive platform worldwide, well defined and complementary brand identities, a wider range of products, and an even stronger presence across teams, athletes, events and leagues. The new adidas Group has pro forma aggregate 2004 revenues of €8.9 billion (U.S. $11.1 billion).
“The announcement represents a major strategic milestone for their Group,” said adidas-Salomon Chairman and CEO Herbert Hainer. “This is a once-in-a-lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry. adidas-Salomon and Reebok are energetic and growing companies with a shared commitment to innovation, sport performance and sport lifestyle.
Together, they will expand their geographic reach, particularly in North America, and create a footwear, apparel and hardware offering that addresses a broader spectrum of consumers and demographics. With Reebok, they are advancing their position on the playing field of the sporting goods industry and are improving our financial strength to drive increased shareholder value.”
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