Losing, Adidas Officially Sells Reebok For 2.1 Billion Euros

Photo: Reuters

JAKARTA - A shoe manufacturer from Germany, Adidas has officially sold one of its shoe brands, Reebok, at a price of 2.1 billion Euros or 2.5 billion United States (US) dollars. This was done because Reebok's performance was unable to increase sales.

Chief Executive Officer (CEO) of Adidas Kasper Rorsted said the selling price of the Reebok was lower than its purchase price in 2005 at around 3 billion euros. Several investors who will buy Reebok are Authentic Brands Group, Forever 21 and several investors in other financial fields.

"This transaction is expected to be completed in the first quarter of 2022, earning Adidas around 2.1 billion euros. Other potential buyers are believed to be mostly financial players," he said, quoted from retaildetail.eu, Sunday, August 15.

Reebok sales are also carried out with the aim that the company is able to compete with Nike. Kasper said that in the world of sports, these two manufacturers continue to compete in the sale of shoes and clothing.

Although sales in the US have more than doubled, Kasper said, Reebok has not been able to perform at its best in sales. In fact, its sales have decreased by 10 percent since it was bought by Adidas in 2005.

"Reebok is suffering because we have made Adidas stronger," he said.

Meanwhile, Reebok CEO Matt O'Toole, said that it was difficult to increase sales because he rarely had new ideas in developing products. The reason, there are two brands that compete in the same group.

In the future, said Matt, Reebok will change its business model. The lifestyle segment with the main market share of female consumers will focus on work in the next five years.

"Currently, women's market share is 40 percent," he said.