Adidas has decided to divest its subsidiary Reebok. The decision was made as part of the development of a new five-year strategy at Adidas. Adidas will report Reebok as a "discontinued operation" as early as the first quarter of 2021.
“The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” said adidas CEO Kasper Rorsted. “After careful consideration, we have come to the conclusion that Reebok and adidas will be able to significantly better realize their growth potential independently of each other. We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.”
Adidas acquired Reebok in 2006 for over three billion euros. After years of declining sales at Reebok, the turnaround plan "Muscle Up" initiated in 2016 with more focus on the fitness sector at least recently ensured that the US brand based in Boston was back in the black.
On March 10, Adidas will announce details of its strategic direction until 2025 at a virtual media day.