Reebok has finally found a buyer.

Adidas announced on Thursday that it has entered into an agreement to sell the brand to Authentic Brands Group (ABG) in a mostly cash deal worth €2.1 billion, or about $2.5 billion at current exchange.

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ABG has a portfolio of more than 30 brands and a history of buying up struggling brands such as Juicy Couture, Forever 21, and Brooks Brothers. The deal is expected to close in Q1 of 2022, with the majority of proceeds to be received by shareholders.

Adidas acquired Reebok in 2006 for $3.8 billion and laid out a turnaround plan for the brand in 2016. The plan was meant to lay “the foundation to unleash its full potential in the highly attractive global sporting goods market.” Adidas announced it would sell the brand in December of 2020 as a part of the company’s 2025 “Own the Game” strategy meant to boost sales and market share. Adidas made the decision to focus more deeply on the Adidas Brand and divest Reebok.

“Reebok has been a valued part of adidas, and we are grateful for the contributions the brand and the team behind it have made to our company,” said Adidas CEO Kasper Rorsted.” With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for Adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders.”

“It’s an honor to be entrusted with carrying Reebok’s legacy forward,” said ABG founder, chairman, and CEO Jamie Salter. “This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand’s success.”

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