Adidas Closes Reebok Acquisition

adidas-Salomon AG closes its acquisition of Reebok International Ltd., providing the new adidas Group with a footprint of around $11.8 billion in the global athletic footwear, apparel and hardware markets. Together, adidas-Salomon AG and Reebok will offer an enhanced portfolio of global brands, including adidas, Reebok, TaylorMade, Rockport, Greg Norman Collection, MAXFLI, CCM, Jofa and Koho. "By combining two of the most respected and well-known brands in the worldwide sporting goods industry, the new Group will benefit from a more competitive worldwide platform, well-defined and complementary brand identities, a wider range of products, and a stronger presence across teams, athletes, events and leagues," says adidas-Salomon AG Chairman and CEO Herbert Hainer. With the close of the transaction, Paul Fireman steps down as CEO of Reebok and will serve as an advisor to Hainer. In addition, new brand presidents were named, which is consistent with the strategy to manage each brand separately so as to retain their unique identities. Erich Stamminger is appointed president and CEO of the adidas brand, and Paul Harrington is appointed president and CEO of the Reebok brand. Mark King will remain president and CEO of TaylorMade-adidas Golf. Further details regarding adidas Group's direction and brand strategy are expected to be announced in April 2006.