Reebok’s India operations to be taken over by Aditya Birla Fashion and Retail

Aditya Birla Fashion and Retail Limited (ABFRL) and Authentic Brands Group (ABG) struck a long-term licence deal on Tuesday to distribute and sell Reebok items in India and other ASEAN countries through wholesale, e-commerce, and Reebok branded retail shops.

Commenting on the transaction, Ashish Dikshit, Managing Director, ABFRL said, “Reebok is one of the leading brands in the sporting goods industry globally and has built a very strong presence in the Indian market over the last two decades. In partnership with ABG, we plan to accelerate Reebok’s business in India, combining its global appeal and salience amongst Indian youth. This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces.”

Corey Salter, Chief Operating Officer, ABG added, “We are very pleased to expand our existing partnership with ABFRL, which includes Forever 21 and other ABG brands, and are confident that ABFRL will be successful in solidifying Reebok’s position with a growing audience of fans in India and Southeast Asia.”

The deal is a big step forward for ABFRL, which has grown its portfolio into a powerhouse of brands across all key fashion and lifestyle categories in recent years. The purchase of Reebok, a well-known worldwide sports and sportswear brand, will help to fill a gap in the company’s portfolio.

Due diligence, legislative approvals, and the signing of definitive agreements are all conditions precedent to the proposed deal.

According to a business statement, the transfer of ownership of the Reebok brand from Adidas to ABG is planned to be completed in Q1 of 2022.