Adidas-Salomon AG plans to buy Reebok International Ltd. for $3.8 billion, giving the brand a stronger presence in American sports.
Under the deal, announced yesterday, Adidas will pay $59 per share of Reebok’s outstanding stock, a premium of 34% over the company’s Aug. 2 closing price. The merger of the two companies will mean greater competition against rival brands, including its top competitor, Nike.
The Adidas group brands include Taylor Made, Rockport, Greg Norman Collection, MAXFLI, CCM, Jofa and Koho. With the addition of Reebok, the group’s North American sales will more than double to $3.9 billion. North America represents 50% of the global sporting goods market.
The move also gives Adidas additional licensing relationships with the National Football League, the National Basketball Association and the National Hockey League in addition to its agreements with and Major League Soccer.
“This is a once-in-a-lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry,” said Adidas-Salomon Chairman and CEO Herbert Hainer in a statement.
Reebok will continue to operate under its name at its Canton, MA-based headquarters.
“With Adidas, we are able to offer an enhanced portfolio of global brands that truly addresses the needs of today’s and tomorrow’s consumers,” said Reebok Chairman and CEO Paul Fireman. “This transaction provides our shareholders with good value for their shares and our employees with an opportunity for an even more exciting future.”
Fireman will remain as Reebok’s CEO.
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