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“A major strategic milestone,” says adidas-Salomon Chairman and CEO Herbert Hainer (top) of the opportunity to combine adidas, endorsed by David Beckham (middle) and US powerhouse Reebok (worn in bottom picture) |
GERMANY. German sportswear company adidas-Salomon has bought US company Reebok for €3.1 billion (US$3.8 billion) in a move designed to challenge the supremacy of arch rival Nike.
Under the definitive agreement approved by its Board of Directors, adidas-Salomon AG will acquire all of the outstanding shares of Reebok for US$59.00 per share in cash.
The acquisition gives adidas-Salomon a stronger foothold in the crucial North American market, which represents 50% of the global sporting goods market. It also “accelerates the adidas group’s strategic intent in the global athletic footwear, apparel and hardware markets”.
Apart from widening the product portfolio, it provides the group with a more competitive global platform, “well-defined” brand identities drawn from the companies’ European and American heritage, and a stronger brand presence through athlete endorsement and sporting events.
With Reebok, the adidas Group’s North American sales are expected to more than double to €3.1 billion (US$3.9 billion).
It is a major strategic milestone, adidas-Salomon Chairman and CEO Herbert Hainer announced. “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,” he said.
“Adidas-Salomon and Reebok are energetic and growing companies with a shared commitment to innovation, sports performance and sport lifestyle. Together, we will expand our 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, we are advancing our position on the playing field of the sporting goods industry and are improving our financial strength to drive increased shareholder value.”
Reebok Chairman and CEO Paul Fireman said: “Adidas is the perfect partner for Reebok. With adidas, we are able to offer an enhanced portfolio of global brands that truly addresses the needs of today’s and tomorrow’s consumers. As an aspirational global sports performance and lifestyle brand, Reebok’s mission is to enrol global youth through sports, music and technology. This complements adidas’s mission to be the leading sports brand in the world with a focus on performance and international presence.”
NOTE: The expanded portfolio of brands now includes adidas, Reebok, TaylorMade, Rockport, Greg Norman Collection, MAXFLI, CCM, Jofa and Koho. The adidas Group will be able to offer footwear, apparel and hardware products based on cutting-edge technology, trend-setting street wear and classic design. It will also be able to provide a complete product offering for key sports categories such as soccer, basketball, running, American football, hockey, tennis, training, outdoor and golf.
MORE STORIES ON ADIDAS-SALOMON AND REEBOK
Another link-up as Porsche inks Adidas sports deal – 11/07/05
Reebok sunglasses feature interchangeable lens – 22/02/05
Fossil enters license agreement with adidas-Salomon – 03/12/2004
