Adidas is selling Reebok to Authentic Brands Group (ABG) for $2.5 billion. Adidas bought Reebok for $3.8 billion in 2006 to help compete with Nike. But sluggish performance prompted repeated calls from investors to sell the U.S. and Canada-focused brand.
A way that Adidas has tried to compete with Nike by using celebrities as ambassadors in their campaigns. For example, Kanye West, Beyonce, and Pharrell Williams have all done Adidas campaigns. Under this deal, Reebok will keep its headquarters in Boston and continue operations in North and Latin America, Asia-Pacific, Europe, and Russia.
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On top of that, the company will work closely with Adidas during the transition. Over 11 years, ABG has amassed over 30 labels sold in 6,000...