#Textiles & Apparel / Garment

2021-08-19

adidas to sell Reebok to Authentic Brands Group (ABG)

adidas announced that it has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for a total consideration of up to € 2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration. The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022. adidas intends to share the majority of the cash proceeds to be received upon closing with its shareholders.

“Reebok has been a valued part of adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for adidas, we will continue to focus our efforts on executing our “Own the Game” strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders,” said Kasper Rorsted, CEO of adidas AG.

Jamie Salter, Founder, Chairman and CEO of ABG commented, “It’s an honor to be entrusted with carrying Reebok’s legacy forward. This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values - including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand’s success.”

adidas bought Reebok in 2006. At the time, the acquisition included the Rockport, CCM Hockey and Greg Norman brands, which adidas later divested for a total consideration of € 0.4 billion. In 2016 Reebok initiated a turnaround plan called "Muscle Up" through which the brand was able to significantly improve its growth and profitability prospects. In March of this year, adidas presented its 2025 “Own the Game” Strategy designed to significantly increase sales and profitability and gain market share by 2025. During the strategy formulation process, adidas assessed strategic alternatives for Reebok with a focus on ensuring both adidas and Reebok would be well positioned for sustainable growth. Following this evaluation, adidas decided to focus its efforts on further strengthening the leading position of the adidas brand in the global sporting goods market and announced the initiation of a formal process to divest Reebok in February 2021.

The sale of Reebok has no impact on adidas’ financial outlook for the current year or the company’s 2025 financial ambition that was announced as part of its Own the Game strategy in March of 2021.

J.P. Morgan acted as exclusive financial advisor to adidas AG and Hengeler Mueller served as legal counsel.

BofA Securities and Goldman Sachs & Co. LLC served as financial, strategic and M&A advisors, while also providing committed financing, and KPMG International Limited served as accounting and due diligence advisor for ABG. Latham & Watkins, LLP acted as legal counsel for ABG. Private equity partners BlackRock LTPC, General Atlantic and Leonard Green & Partners, L.P. also played an instrumental role in this partnership.

“Production is a product”

From technical textiles and AI-driven robotics to the limitations of textile circularity: Professor Dr Thomas Gries looks back on more than two decades of development at ITA Aachen. In the interview, he explains why production technology remains a decisive success factor, discusses international collaborations and innovation ecosystems, and shares his views on the transformation of production landscapes and the challenges facing an increasingly regulated industry.

“We need to move away from the price trap and return to a value-driven mindset.”

With its new Textile Innovation Center, KARL MAYER is sending a strong signal for innovation, collaboration, and the future of textile applications. In this interview, Karl Josef Mayer discusses new opportunities in warp knitting, the processing of staple fibres, recycling, the changing role of machinery manufacturers, and why the textile industry must once again focus more strongly on the value of textiles. by Oliver Schmidt

“Innovation, resilience and international experience remain the great strengths of the Swiss textile machinery industry”

Geopolitical uncertainty, growing competitive pressure from China, new free trade agreements and the shift towards a circular economy are currently reshaping the global textile industry. In this interview, Cornelia Buchwalder discusses the current mood within the Swiss textile machinery sector, the industry’s distinctive innovative strength, new market opportunities in India and Asia, and the technological trends that could shape the upcoming trade fair cycle leading up to ITMA 2027.

Mario Jorge Machado re-elected President of EURATEX

The EURATEX General Assembly has re-elected Mario Jorge Machado as President of EURATEX, renewing its confidence in his leadership at a crucial moment for the European textile and clothing industry. The sector is facing rising costs, global competitive pressure and an increasingly challenging transition towards sustainability and digitalisation.

Next week’s focus: Intertextile Shenzhen & Yarn Expo Shenzhen fuse textile tradition with sustainable, digital trends

Fashion will not be left behind in one of the world’s undisputed tech and manufacturing capitals. Which is why next week, at Intertextile Shenzhen Apparel Fabrics and Yarn Expo Shenzhen 2026, the organisers have made special efforts to integrate textile topics such as materials innovation, holistic sustainability, digitalisation and AI. Yet, from 9 – 11 June at the Shenzhen Convention and Exhibition Center, the platform also includes timeless tradition and heritage-inspired evolution in equal measure. Across both shows, over 600 exhibitors from 11 countries and regions are set to showcase everything from Peruvian alpaca wool fabrics to tea-derived fibres, while their fringe programmes will explore diverse solutions along the entire value chain.

2026 general meeting of the Friends and Supporters of RWTH Aachen at ITA

The Friends and Supporters of RWTH Aachen e. V. (proRWTH) looked back on a successful year of support at their 2026 general meeting. The meeting took place at Institut für Textiltechnik (ITA) of RWTH Aachen and was combined with a joint session of the Executive Board and the Administrative Board. Before the general meeting began, participants were given a guided tour of ITA, providing them with fascinating insights into current research and development topics in textile engineering.

Cotton ConneXions Insight to Impact brings supply chain leaders together around cotton innovation

Cotton Incorporated’s Cotton ConneXions Insight to Impact brought together more than 300 industry leaders from 140 companies across 10 countries, including more than 45 top global brands and sourcing organizations, underscoring strong global interest in cotton-rich product development, sourcing and supply chain collaboration.

Footwear innovation enabled by warp knitting technology– insights from New Balance

The future of the athletic shoe is increasingly being shaped on warp knitting machines. For KARL MAYER, the footwear industry is one of the most important growth markets – and one of the sectors where innovative textiles can realize their full potential. In his keynote address at the opening of KARL MAYER’s TEXTILE INNOVATION CENTER in Obertshausen in April, Vishnu Prakash Muthusamy, Senior Textile and Materials Engineer at New Balance, explained the opportunities that warp knitting technology opens up for performance, sustainability, and faster development processes, and why textile manufacturers are transitioning from suppliers to development partners.