Reebok Could Fetch $2.2 Billion In Sale
Nearly a decade ago, Adidas bought Reebok for $3.8 billion. Now, the world’s second largest sports apparel firm may be looking to sell big.
A Hong-Kong based private equity investment and advisory firm is looking into buying Reebok from Adidas. The Wall Street Journal reported that Jynwel Capital and funds associated with the Abu Dhabi government had put in a bid for $2.2 billion to buy Reebok from Adidas, prompting shares in the German sportswear company to rise heavily.
When Adidas bought Reebok in 2005, it initially doubled their sales in the U.S. and gave Adidas leeway in the basketball and apparel market. But after repositioning Reebok as more of a fitness brand as opposed to a classic sneaker brand, the company hasn’t seen anywhere near the projected numbers of profit it was looking for.