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Adidas-Salomon & Reebok BOD declares agreement to create €9 bn

03 Aug '05

8 min read

Approvals and Timing

The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Reebok shareholders. Paul and Phyllis Fireman collectively own approximately 17 percent of Reebok's outstanding shares and have agreed to vote their shares in favor of the transaction. The companies believe that the transaction will close in the first half of 2006.

Advisors

In connection with the transaction, Merrill Lynch is acting as financial advisor to adidas-Salomon AG, and an international legal team led by Simpson Thacher & Bartlett LLP assisted by Beiten Burkhardt, Eversheds LLP and Wilmer Cutler Pickering Hale and Dorr LLP is serving as legal counsel. Credit Suisse First Boston LLC is acting as financial advisor to Reebok, and Ropes & Gray LLP and Latham & Watkins LLP are serving as legal counsel.

Germany based adidas-Salomon is the second largest sporting goods company in the world with its core brands adidas and TaylorMade–adidas Golf. Excluding the Salomon business segment, which is planned for divestiture at the end of September, the adidas Group had 14,217 employees and reached sales of €5.9 billion in 2004. The Group's net income attributable to shareholders from continuing and discontinued operations reached €314 million in 2004.

US based Reebok International Ltd headquartered in Canton, MA, is a leading worldwide designer, marketer and distributor of sports, fitness and casual footwear, apparel and equipment under the Reebok, Rockport, CCM, Jofa, Koho and Greg Norman brands. Sales for 2004 totaled approximately $3.8 billion.

adidas-salomon AG

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