Authentic Brands is about to add another huge consumer brand to its biz — Adidas AG plans to sell Reebok to Authentic in a $2.5 billion deal.
Adidas purchased Reebok for nearly $4 billion in 2006, but Reebok has underperformed for years. Even though the company reached profitability in 2019, its sales growth was insufficient for Adidas. Reebok, on the other hand, is a sufficient addition to Authentic’s portfolio of scrappy companies … which reek of the 2000s. 😅 Many are underperformers which are no longer as popular among customers, but their holdings still provide plenty of value.
In 2020, Authentic reported $211 million in revenue.
Among Authentic’s portfolio brands are Forever 21, Sports Illustrated, Volcom, Eddie Bauer, and Juicy Couture, to name a few. Authentic also retains brand rights for Shaquille O’Neal, Muhammad Ali, and Elvis Presley, among others.
The acquisition comes at a critical time for the brand group, which filed for a $1.5 billion IPO earlier this month. It’s still unknown whether or not investors will take a bite out of the brand. Nonetheless, Authentic’s star-studded lineup of bookrunners makes the $AUTH IPO one to watch. 🌟
Authentic’s notable owners include BlackRock, Leonard Green & Partners, General Atlantic, and Lion Capital LLP.