Authentic Brands Group Inc. entered into a definitive agreement to acquire Reebok International Ltd. from adidas AG for a total consideration of up to $2.5 billion.
August 11, 2021
Share
Authentic Brands Group Inc. entered into a definitive agreement to acquire Reebok International Ltd. from adidas AG (XTRA:ADS) for a total consideration of up to $2.5 billion on August 12, 2021. The majority of consideration to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration. Matt O'Toole and Todd Krinsky, a senior vice president at Reebok, will continue to lead that group. Reebok will lay off about 150 people and the majority of cuts would affect employees in Massachusetts. Reebok's global operations will remain based at its Boston headquarters after the acquisition. The closing of the transaction is subject to customary closing conditions, including regulatory approval and is expected to occur in the first quarter of 2022. As of February 11, 2022, the transaction is expected to close on February 28, 2022. As of February 20, 2022, the transaction is expected to close in the first quarter of 2022. Adidas intends to share the majority of the cash proceeds to be received upon closing with its shareholders. As of November 8, 2021, Federal Antimonopoly Service (FAS) of Russia granted the company Authentic Brands Group (ABG) on the acquisition of Reebok.
J.P. Morgan acted as exclusive financial advisor to adidas AG and Matthias Hentzen, Christian Möller, Thorsten Mäger, Vera Jungkind, Simon Patrick Link, Markus Ernst, Heinrich Knepper, Daniela Böning, Gunther Wagner, Patrick Wilkening, Astrid Harmsen, Andrea Schlaffge and Martin Ulbrich of Hengeler Mueller served as legal counsels. BofA Securities and Goldman Sachs & Co. LLC served as financial, strategic and M&A advisors, while also providing committed financing, and KPMG International Limited served as accounting and due diligence advisor for ABG. Heiko Gotsche, Justin Hamill, Michael Anastasio, Oliver Felsenstein, Edward Barnett, Jeffrey Tochner, Joseph Kronsnoble, Stefan SüÃ, Sean Finn, Héctor Armengod, Joshua Tinkelman, Tobias Leder, Austin Ozawa, Christina Mann, Peter Todaro, Thies Deike, Robert Blamires of Latham & Watkins, LLP acted as legal counsels for ABG. Private equity partners BlackRock LTPC, General Atlantic and Leonard Green & Partners, L.P. also played an instrumental role in this partnership. Konstantin Technau and Stephen M. Kotran of Sullivan & Cromwell LLP represents J.P. Morgan which acted as exclusive financial adviser to adidas AG. Latham & Watkins LLP acted as legal adviser to the company. Stephen M. Kotran of Sullivan & Cromwell LLP acted as the legal advisor for adidas AG.
adidas AG is one of the world leaders in the design, manufacturing and marketing of sports equipment and articles. The group's products are sold primarily under the following brands: adidas, TaylorMade and Reebok. Net sales (before intragroup eliminations) break down by family of products as follows:
- shoes (56.7%);
- clothing (36.4%);
- sports equipment (6.9%): golf equipment (golf clubs, balls, gloves, metal clubs, etc.; No. 1 worldwide; TaylorMade and Maxfli), bags, balls, etc.
At the end of 2023, the products are marketed through a network of more than 2,000 stores worldwide.
Net sales are distributed geographically as follows: Europe-Middle East and Africa (39.4%), North America (24.4%), China (15%), Latin America (10.7%) and Asia/Pacific (10.5%).
Authentic Brands Group Inc. entered into a definitive agreement to acquire Reebok International Ltd. from adidas AG for a total consideration of up to $2.5 billion.