Sporting-goods manufacturer
Adidas has announced its will buy out rival Reebok, in a deal worth a reported
$3.8 billion.
Adidas is ranked at number two behind Nike in the sporting-goods
industry, with Reebok in third.
“This is a once-in-a-lifetime opportunity to combine two
of the most respected and well-known companies in the worldwide sporting goods
industry,” said Adidas-Salomon Chairman and CEO Herbert Hainer.
With the acquisition, the collective company would corner 20%
of the U.S. athletic-shoe market, positioning themselves as leading competitors
with Nike.
Both companies have numerous celebrity endorsers and event deals.
Reebok counts Jay Z, Nelly and 50 Cent among their famous names, while Adidas
has held a long-standing tradition in the hip hop community, starting with pioneers
Run-D.M.C. to recently acquired spokesperson Missy “Misdemeanor”
Elliot.
According to figures released by Reebok, footwear products endorsed
by Jay-Z and 50 Cent helped the company doubled fourth quarter earnings over
the previous year.
The proposed merger is still contingent upon approval of shareholders.
“Together,
we will expand our geographic reach, particularly in North America, and create
a footwear, apparel and hardware offering that addresses a broader spectrum
of consumers and demographics,” Hainer said.
