ABG approaches Adidas with £700m Reebok bid

Adidas has reportedly been approached by Authentic Brands Group with a $1bn (£704m) offer to buy global footwear brand Reebok.

According to the New York Post, Jamie Salter’s brand management group partnered with Wolverine Worldwide, a footwear manufacturer, to table the bid.

Having bought the group for $3.8bn (£2.7bn) in 2006, Adidas announced the decision to offload Reebok in February of this year in an effort to focus on its core brand.

One source told the Post that Apollo Global Management has also made a non-binding offer for the brand, but it remains unclear how much the private equity company offered to pay.

A source also claimed that “it’s a really tough deal”, due to Reebok’s revenue falling to $1.5bn (£1.06bn) in FY20 from $1.8bn (£1.27bn) the year before.

The source added that “it’s hard to come up with a value for a company that loses money”.

Adidas has also warned of potential financial difficulties, as it expects operating profit to drop £214m as a result of its decision to divest Reebok.

Other suitors for the brand reportedly include Chinese sportswear brand Anta, and Korean sportswear manufacturer Fila, with final offers expected by late June.

Retail Sector has contacted both Adidas and Authentic Brands Group for further comment.