By Joshua Kirby
Adidas AG said Tuesday that it is planning a new share-buyback program amounting to up to 1.5 billion euros ($1.68 billion) to return to shareholders the proceeds of the divestment of U.S. sportswear brand Reebok, which has now been completed.
The program will return to shareholders the cash proceeds from the sale of Reebok to New York-based licensing company Authentic Brands Group, in a deal signed last year amounting to up to EUR2.1 billion including certain deferred and contingent considerations. The German sporting-goods company said at the time that it planned to return the proceeds of the transaction to its shareholders.
The divestiture of Reebok has now been formally completed and Adidas has received the majority of the cash part of the deal, but will continue to operate the business on behalf of ABG during a transition period, it said.
The buyback will begin in the middle of this month and run until the end of the third quarter, Adidas said. It comes on top of an existing program to buy back shares of up to EUR4 billion through 2025, the first tranche of which was completed last month, Adidas said.
Write to Joshua Kirby at [email protected]; @joshualeokirby