Kasper Rosted, Chief Executive Officer of Adidas./Photo = REUTERS
Adidas, a global sports goods company, is promoting a plan to sell or spin off its affiliate Reebok. They bought Reebok for 4 trillion won, but the book price fell to 1 trillion won, and the performance was sluggish.
According to the Reuters news agency on the 16th (local time), Adidas has decided to take the procedure to dispose of Reebok. It’s been 15 years since it acquired Reebok to gain an edge in its rival Nike.
Adidas plans to disclose Reebok as a discontinued business from the first quarter of this year. In the industry, the corporate value of Reebok is estimated to be around 1 billion euros (about 1.3 trillion won).
Adidas acquired Reebok, headquartered in Boston, USA, for $3.8 billion (about 4.2 trillion won) in 2006. It was a strategy to strengthen the attack on the US market that Nike had dominated.
Since then, the sluggish performance has continued, which has been under pressure from investors. Reebok’s book value recorded by Adidas in 2019 was only 844 million euros (1.3 trillion won).
In this regard, Kasper Rosted, CEO of Adidas, said in a statement that “Reebok and Adidas will be able to realize their growth potential independently of each other.”
Reporter Lee Mi-kyung, Hankyung.com [email protected]
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