Wednesday, August 03, 2005

Adidas Reebok to challenge Nike in global market

German sports products group addidas-Salomon AG and the US Reebok International Ltd today announced a definitive agreement under which adidas-Salomon AG will acquire all of the outstanding shares of Reebok for US$59.00 per share in cash. The transaction value is approximately US$3.8 billion including the assumption of net cash of US$84 million.

The combination of adidas and Reebok accelerates the adidas group’s strategic intent in the global athletic footwear, apparel and hardware markets. The new group will benefit from a more competitive platform worldwide, well-defined and complementary brand identities, a wider range of products, and an even stronger presence across teams, athletes, events and leagues.

adidas expects that the combined group’s strong presence across teams, athletes, events and leagues will enable it to substantially increase the worldwide visibility of its brands. The group’s endorsement contracts will include many of the world’s elite teams, such as Real Madrid, Milan AC, Bayern Munich and Liverpool FC, as well as high-profile global events, such as the 2006 FIFA World Cup. The group will also have licensing relationships with the UEFA Champions League and with Major League Soccer.

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