Adidas has decided to begin the formal divestiture process for Reebok as part of its new five-year strategy, details of which will be unveiled on March 10.
Adidas said it would be reporting Reebok as discontinued operations from the first quarter of 2021.
Adidas acquired Reebok 15 years ago in an attempt to expand its presence in the U.S. market, though it said it had been considering “strategic alternatives for Reebok” after a business review published in late 2020 highlighted lackluster performance.
Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” CEO Kasper Rorsted said in a statement emphasizing the “highly attractive” long-term growth opportunities in the market for “iconic sports brands.”
There are several options for Reebok after Adidas.
The brand could be spun out into an independent company, or sold to another retailer, group or private equity.
