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Frankfurt - Adidas-Salomon said on Wednesday that it will buy shoemaker Reebok International in a €3.1bn (US$3.8bn) deal, giving the company about 20% of the US market and putting it in a position to better challenge leader Nike.
Under the terms of the all-stock deal, Adidas will pay $59 for all of Reebok's outstanding shares, a premium of 34.2%.
The deal is subject to regulatory approval in the United States and Europe as well as by shareholders. Both companies said the transaction could close during the first half of 2006. The deal will bring together two impressive stables of athletes and entertainment endorsers. English soccer star David Beckham and rap artist Missy Elliott are under contract to Adidas. Reebok in February launched the "I am what I am" marketing campaign, which features pitches from celebrity entertainers and athletes in an effort to draw younger buyers who regard sneakers as high fashion.
One of the ads featuring the rapper 50 Cent was pulled in March amid complaints that it glorified gun violence. Reebok said its second-quarter profit soared 71% on strong sales driven by its high-performance model shoes and the new marketing campaign. The announcement came as the Herzogenaurach-based company posted a 30% gain in second-quarter net profit and improved sales. The company earned €66m ($80.6m), or €2.02 a share, in the quarter ended June 30, compared with a profit of €45m, or €1.51 a share, in the year-ago period.
Sales totaled €1.5bn, compared with €1.4bn a year ago. -Finance24.com
Under the terms of the all-stock deal, Adidas will pay $59 for all of Reebok's outstanding shares, a premium of 34.2%.
The deal is subject to regulatory approval in the United States and Europe as well as by shareholders. Both companies said the transaction could close during the first half of 2006. The deal will bring together two impressive stables of athletes and entertainment endorsers. English soccer star David Beckham and rap artist Missy Elliott are under contract to Adidas. Reebok in February launched the "I am what I am" marketing campaign, which features pitches from celebrity entertainers and athletes in an effort to draw younger buyers who regard sneakers as high fashion.
One of the ads featuring the rapper 50 Cent was pulled in March amid complaints that it glorified gun violence. Reebok said its second-quarter profit soared 71% on strong sales driven by its high-performance model shoes and the new marketing campaign. The announcement came as the Herzogenaurach-based company posted a 30% gain in second-quarter net profit and improved sales. The company earned €66m ($80.6m), or €2.02 a share, in the quarter ended June 30, compared with a profit of €45m, or €1.51 a share, in the year-ago period.
Sales totaled €1.5bn, compared with €1.4bn a year ago. -Finance24.com
Original Source
That's saweet
My best 2 brands coming together. I hope they can bring out some power shoes coz I need a pair..
