RIGHTS TO REEBOK: The Adidas Group has bought the distribution rights for the Reebok brand in the Czech Republic and Slovakia from RBK Sport CZ and RBK Sport SR, respectively. The move follows a buyout earlier this year from distributors in Russia and China and is part of a global corporate integration strategy that will provide the German athletic giant, which bought Reebok earlier this year, with annual revenue synergies of at least $250 million by 2009. Effective in 2007, Adidas CR s.r.o. will become the exclusive distributor of Reebok products in the Czech Republic, and Adidas Slovakia s.r.o. will become the exclusive distributor of Reebok products in Slovakia. Financial details of the transaction weren’t disclosed.
POSSIBLE POLO EUROBOND: Polo Ralph Lauren said on Tuesday that the company would meet with European investors about possible euro-denominated bond financing. The company, which didn’t say how much it plans to raise, said it intends to use the proceeds to refinance its maturing euro-denominated debt and for general corporate purposes. Any notes offered will be offered exclusively outside the U.S. to non-U.S. investors.
HOUSE PASSES LABELING ACT: The House passed a bill Tuesday that would establish a legal standard for labeling superfine wool and cashmere products and could deter companies from mislabeling suits and separates and undercutting legitimate businesses. The Wool Suit Fabric Labeling Fairness & International Standards Conforming Act seeks to amend an existing law that doesn’t define the requirements for labeling certain wool and cashmere products. Unscrupulous companies have used the loophole in the existing law to mislead consumers, claiming their products contain superfine wool when they contain inferior fibers and fabrics, and selling the products at much cheaper prices than the genuine wool apparel products, according to trade associations representing fabric makers and suit companies. A companion bill was introduced in the Senate.