Adidas to use $1.7 billion from Reebok sale in new takeover
By Joshua Kirby
Adidas AG said on Tuesday it was planning a new share buyback program of up to 1.5 billion euros ($1.68 billion) to return to shareholders proceeds from the sale of the American fashion brand. Reebok sport, which is now complete.
The program will return to shareholders cash proceeds from the sale of Reebok to New York-based licensing firm Authentic Brands Group, as part of a €2.1 billion deal signed last year, including certain deferred and contingent considerations. The German sporting goods company said at the time that it planned to return the proceeds of the transaction to its shareholders.
The Reebok divestiture is now officially complete and Adidas has received the majority of the cash portion of the deal, but will continue to operate the business on behalf of ABG for a transition period, he said.
The buyout will begin in the middle of this month and run through the end of the third quarter, Adidas said. It comes on top of an existing share buyback program of up to 4 billion euros through 2025, the first tranche of which was completed last month, Adidas said.
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