adidas: unveils plan to divest second brand Reebok
(CercleFinance.com) - German sports gear maker adidas has decided to begin a formal process aimed at divesting its subsidiary brand Reebok, so as to focus its efforts on strengthening the position of its main brand, the company said late on Tuesday.
The move means that adidas is going to report Reebok as discontinued operations from the first quarter of 2021 and onwards.
The planned divestment is part of the company's new five-year strategy, which has entailed the assessment of strategic alternatives for the struggling brand.
adidas acquired Reebok in 2006, and in 2016 launched a turnaround plan to improve its growth and profitability.
The sportswear group said it will unveil the details of its strategic business plan to 2025 at the company's virtual investor and media day on 10 March.
The stock-market reaction to the announcement was muted, with the shares dropping about 0.7% in Frankfurt on Wednesday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The move means that adidas is going to report Reebok as discontinued operations from the first quarter of 2021 and onwards.
The planned divestment is part of the company's new five-year strategy, which has entailed the assessment of strategic alternatives for the struggling brand.
adidas acquired Reebok in 2006, and in 2016 launched a turnaround plan to improve its growth and profitability.
The sportswear group said it will unveil the details of its strategic business plan to 2025 at the company's virtual investor and media day on 10 March.
The stock-market reaction to the announcement was muted, with the shares dropping about 0.7% in Frankfurt on Wednesday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.