Even though the ink is not dry on the final sale documents, Authentic Brand Group continues to line up partners for its soon-to-be-acquired Reebok brand. ABG has agreed a definitive agreement to acquire Reebok from Adidas for 2.1 billion euros and the deal is expected to be closed by the end of next month.
On Thursday, ABG inked a deal with Al Boom Marine to become the operating partner for Reebok in the GCC, the Middle East including Iraq and Lebanon, and North Africa including Algeria, Egypt and Morocco. GCC, which stands for Gulf Cooperation Council, includes six Middle Eastern countries: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
The agreement covers footwear for men, women and children, as well as activewear and sportswear for men and women.
ABG operates more than 40 brands, 60 stores and more than 300 wholesale accounts in the GCC, Middle East and North Africa. As part of the agreement, ABM will partner with Reebok Design Group, the brand’s Boston-based design and development arm, on the product assortment.
“Our partnership with Al Boom Marine cements our strategic plan to expand Reebok’s presence in the Middle East and North Africa region,” said Corey Salter, chief operating officer of ABG. “Together we will enhance Reebok’s strong appeal with a core and growing consumer base and drive brand growth in this important market.”
Earlier this week, the Boston Globe reported that some 150 people will be laid off at Reebok when the ABG sale is finalized — the majority of them at the brand’s Boston offices. Matt O’Toole, Reebok’s president, informed his staff during a Zoom call last week, according to the paper, saying the layoffs are necessary to support an “entirely different operating model” under Authentic Brands. Reebok employs around 4,200 people, 600 of them in Boston.