Marking its entry into the sportswear category, Aditya Birla Fashion and Retail is set to take over Reebok’s operations in India and other Asean markets.
The company that sells brands such as Peter England, Van Heusen and Louis Philippe has signed a long-term licensing agreement with Authentic Brands Group to acquire exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores. The US-headquartered ABG had bought the under-performing Reebok business from German sportswear giant Adidas in August this year in a $2.5-billion deal. The transfer of ownership of the Reebok brand from Adidas to ABG is expected to close in Q1 of 2022.
“As Indians get more active, athletic and health-focused, their consumption of apparel and accessories is expected to increasingly change in line with these trends, providing an opportunity to build iconic brands of global repute,” said Ashish Dikshit, MD, ABFRL.
Adidas, earlier responsible for Reebok’s operations, had acquired the company in 2006 for $3.8 billion to compete with Nike.