1/6/2024 0 Comments Rebook video![]() It’s a deal that resets the active game on several fronts, freeing Adidas to focus on its much bigger flagship business while giving licensing powerhouse ABG a big boost in the hot category, and just before its planned initial public offering this summer.Īdidas was toying with the idea of selling the struggling Reebok last year and made it official in February, putting the company on the block just before it unveiled its “Own the Game” strategy to boost sales and profitability. While Salter declined to comment on how the deal was structured, s ources said the c ash transaction will likely add up to $1.5 billion to $2 billion and that the deal has three components, covering the brand’s intellectual property, the working capital and an earn-out. He said over the next several months, Reebok will extricate itself from Adidas’ systems and join ABG’s platforms around the world after what he expects to be a “smooth transition.” We’ll just be streamlining the process and will still deliver great product, but in a different way.” “The stores, the internet and the customer are all staying intact. “It’ll be business as usual all over the world,” Salter said. It will be renamed RDG and will continue to contract with the same manufacturing facilities Reebok has worked with for decades, he said. ![]() Reebok president Matt O’Toole is expected to be key in the transition.ĪBG will also retain Reebok’s office in Vietnam, where the majority of the brand’s line is produced. “We’re going to keep a very large team in Boston,” he said. That global design center will be based at Reebok’s Boston headquarters, which will be retained - where it is led by vice president of creative direction Kerby Jean-Raymond - along with its “massive team,” which will help ABG navigate this new operating model. This will be accomplished through the creation of a new platform that Salter called RDG, or Reebok Design Group. Much like the company’s SPARC division, a 50-50 partnership with Simon Property Group, Reebok will do all the designing, and once orders are received, it will send them to the brand’s existing manufacturing facilites to produce, bypassing the third-party licensee which would traditionally receive a percentage of the sales. ![]() Salter told WWD the purchase - which is four times larger than any other deal ABG has made - is expected to be the first brand using a new approach with the existing ABG operating model. Jamie Salter has made his active move at Authentic Brands Group - inking an up to 2.1 billion euro deal to buy Reebok from Adidas and reuniting the brand with star endorser Shaquille O’Neal, who has long wanted to own it.Īnd as much as that means big changes for Reebok, it’s a move that will also have a significant impact on ABG, which Salter leads as chairman and chief executive office.
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