German sportswear brand Adidas is considering selling US sneaker company Reebok as early as March 2021, a source close to the matter told Bloomberg.
Adidas has assigned an internal team, who have signed confidentiality agreements, to work on a potential deal, but this is in its early stages, the source said.
An Adidas spokesperson told Business Insider the company "does not comment on market rumors."
Adidas bought Reebok in 2006 for around 3.1 billion euros ($3.8 billion) — a bid to stay competitive with US sportswear rival Nike.
The proportion of Adidas' income that comes from Reebok has fallen since the acquisition. In 2007, a quarter of Adidas' total retail sales – more than $2 billion – came from Reebok. This has steadily declined over the past decade, and in the quarter to June 2020 Reebok made up just 6.4% of Adidas' total sales.
While Adidas' sales fell by a third in the quarter to June compared to last year, Reebok's dropped by 42% to just 228 million euros ($270 million).
Manager Magazin, which first reported the potential sale, said interested parties included VF Corp, which owns outdoor apparel brands including Timberland, Vans, and North Face, as well as FILA-owner Anta International Group Holdings, although it did not cite any sources.
Prior to the pandemic, Adidas Chief Executive Officer Kasper Rorsted hoped for about 2 billion euros ($2.4 billion) from a sale, Manager Magazin reported, but would now accept less.
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