Adidas AG is all set to sell Reebok to Authentic Brands Group Inc. in a business deal that could be at about USD 2.5 billion. The deal will help US-based Authentic Brands to include another well-known brand into its portfolio of consumer companies. 

According to reports, the deal, which will be closed by the first quarter of 2022, marks a significant landmark in the growth of Authentic Brands Group, the company’s Chief Executive Officer Jamie Salter said in a statement. 

Authentic Brands, which filed recently for IPO in the U.S., has already acquired more than 30 names, including bankrupt assets such as Barneys New York and Brooks Brothers. Reebok has been formally on the block since early this year after Adidas had tried to revive the brand’s performance for more than a decade.

Adidas had recently put Reebook on sale after failing to revive the brand for the past 10 years. On the other side, Authentic Brands, in the past few years, has acquired several consumer brands such as Barneys New York and Brooks Brothers.  Reacting to the development, Adidas shares rose as much as 2.5 percent to 314.70 euros in Frankfurt trading after the announcement.

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