adidas-Salomon & Reebok merger moves cross another milestone
04 Oct '05
2 min read
Herzogenaurach based footwear, apparel and accessories maker of adidas-Salomon AG and footwear maker Reebok International Ltd announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to the proposed acquisition of Reebok by adidas-Salomon AG, has expired. As a result, no further anti-trust regulatory review will be necessary in the United States.
On August 3, 2005 adidas-Salomon and Reebok announced that their Boards of Directors had unanimously approved a definitive agreement under which adidas-Salomon would acquire all of the outstanding shares of Reebok for U.S. $59.00 per share in cash. The transaction value is approximately EUR 3.1 billion (U.S. $3.8 billion) including the assumption of Reebok's net cash position.
As previously announced, the transaction is subject to customary closing conditions and regulatory approvals as well as authorization by Reebok shareholders. The companies believe that the transaction will close in the first half of 2006.
Germany based adidas-Salomon is the second largest sporting goods company in the world with its core brands adidas and TaylorMade–adidas Golf. Excluding the Salomon business segment, which is planned for divestiture at the end of September, the adidas Group had 14,217 employees and reached sales of €5.9 billion in 2004. The Group's net income attributable to shareholders from continuing and discontinued operations reached €314 million in 2004.
US based Reebok International Ltd headquartered in Canton, MA, is a leading worldwide designer, marketer and distributor of sports, fitness and casual footwear, apparel and equipment under the Reebok, Rockport, CCM, Jofa, Koho and Greg Norman brands. Sales for 2004 totaled approximately $3.8 billion.
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