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
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
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With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)