NEW YORK — Adidas-Salomon AG said today it will buy Reebok International Ltd. for about $3.8 billion, or $3.1 billion euros, in a deal that is aimed at improving its position to challenge Nike Inc., the world’s biggest athletic company....
NEW YORK — Adidas-Salomon AG said today it will buy Reebok International Ltd. for about $3.8 billion, or $3.1 billion euros, in a deal that is aimed at improving its position to challenge Nike Inc., the world’s biggest athletic company.
The companies have combined revenues of about $11.1 billion, compared with Nike’s $13.7 billion.
Under terms of the deal, Adidas is offering $59 for each share of Reebok, based in Canton, Mass., a premium of 34.2 percent on Tuesday’s closing price on the New York Stock Exchange.
The purchase gives Herzogenaurach, Germany-based Adidas, which has reported declining U.S. sales for the last two years, a stronger foothold in the American market as well as access to Reebok’s licenses to supply apparel to the National Football League, the National Basketball Association, Major League Baseball and the National Hockey League. In addition, the acquisition is likely to give the combined company more negotiating leverage with retailers.
``Today’s announcement represents a major strategic milestone for our group,’’ Adidas-Salomon chairman and chief executive officer Herbert Hainer said in a statement. ``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.’’ Paul Fireman, Reebok’s founder, chairman and ceo, said in a statement: ``Adidas is the perfect partner for Reebok. 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.’’
In the battle for celebrities, Adidas has endorsers such as soccer superstar David Beckham and rapper Missy Elliot, while Reebok boasts basketball stars like Yao Ming and Allen Iverson.
The deal is subject to regulatory approval in the U.S. and Europe and by shareholders. The companies said the acquisition may close in the first half of 2006.
Reebok in the second quarter ended June 30 reported that earnings increased 70.2 percent to $37.1 million from $21.8 million in the same period last year. The results were propelled by increased operating margins and sales of performance footwear, including Reebok’s new Pump 2.0 technology. The firm said that it had started selling footwear at Target under its LogoAthletic brand.— Melanie Kletter
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)