Business

Nine West partner offers to buy Reebok for over $1B

Offers to buy Reebok began rolling on this week with the licensing company behind Nine West and Frye providing round $1 billion for the money-losing sneaker label, The Post has discovered.

Jamie Salter’s Authentic Brands Group teamed up with Wolverine World Wide, the footwear maker behind Merrell sneakers and Hush Puppies, to supply barely greater than $1 billion for the Cardi B-linked brand, a supply stated.

That’s nicely far beneath the $3.8 billion Adidas paid for Reebok again in 2006.

Apollo Global Management additionally made a non-binding supply for the struggling health label earlier this week, a supply shut to the state of affairs stated.

It’s unclear how a lot the Marc Rowan-led non-public fairness big supplied to pay for Reebok, however all offers are at the moment contingent on due diligence. Final offers are anticipated by late June.

Germany-based Adidas didn’t return a request for remark.

The company has been wanting to offload Reebok since Feb. 16, saying it desires to give attention to rising its core model world wide. But the public sale comes as Reebok bleeds money — to the tune of greater than $100 million in a year earlier than earlier than curiosity, taxes, and amortization, sources stated.

Reebok was based in England in 1895 and the model actually took off within the Nineteen Eighties when it launched the primary athletic shoe particularly designed for girls. Reebok has since lost its footing because it seeks to compete with a rising variety of health manufacturers for girls, together with Saucony and Puma.

Cardi B showing off the Reebok gear and sneakers in the apparel line on which she partnered with the company.
Cardi B exhibiting off the Reebok gear and sneakers within the attire line on which she partnered with the company.
Reebok/ MEGA

The company’s steep losses imply potential patrons can’t borrow money to use towards the acquisition, sources stated. Also probably dragging down the worth: Adidas will cease making the sneakers put up sale, requiring some bidders to discover footwear companions, sources stated.

“It’s a real tough deal,” one supply stated. “It’s hard to come up with a value for a company that loses money.”

Adidas has advised Wall Street {that a} turnaround it began in 2016, together with its 2018 collaboration with Cardi B, has improved the brand’s prospects. It has projected income inside 5 years below a brand new proprietor.

But a supply shut to the gross sales course of say Reebok’s income fell final year to $1.5 billion from $1.8 billion in 2019.

Also circling Reebok has been non-public fairness big Cerberus Capital Management, sources stated. Other patrons, Reuters reported final week, embrace Chinese firms Anta Sports and Li-Ning and Korea’s Fila.

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