REEBOK SOLD TO ADIDAS

[mrjet 0]

Big effect on the hockey market in the future!

So it happende, thanks for the stock gain from 20 dollars to 65 Dollars, we so this comming

Nike is no more the biggest the only thing the have on there side is a big home marked, sale is much harder for them in other countries in the world, we like nice quality and nice people,

My guess is Nike to try to take over Puma our Umbro, this will be so expensive that they need to make the hockey divisjon go away, any comments on this from others?

[jbyun04 7]

haw haw haw

link? source?

[SR27 0]

Well he beat me to it. Not quite in style but yes it is true

[mik3 1]

3.5bil, that's nuts. Nike still has the market held down in america though. In other countries this might maket adidas #1

[DarkStar50 679]

Page 1, www.nytimes.com.

[DeI 18 0]

http://news.yahoo.com/s/ap/20050803/ap_on_...DNqBHNlYwM3NDk-

[Petey21 1]

Another article:

http://cnn.com/2005/BUSINESS/08/03/adidas....reut/index.html

Wonder how this will affect the hockey equipment market in the future? Will we see Adidas labelled skates, sticks and other equipment? Adidas used to be in the hockey business a long time ago, they made skates in the 70s (I have posted scanned pics of those before) and also jerseys for international tournaments such as the World Championships in the mid-to-late 80s (before Tackla got the endorsement), the Soviets and Czechs were using those jerseys in the 1987 Canada Cup as well.

[freq019 0]

third article

http://quote.bloomberg.com/apps/news?pid=1...uALw&refer=home

wow I didn't see this coming, well not that I was looking but I didn't think Adidas was big.

[Jim A 4]

In its other purchases, adidas, Nike, etc have mostly allowed other companies to run as is..so this doesn't mean a slew of Adihockey stuff much like you don't see the swoosh on a pair of Chuck T's

[jimmy 194]

"Under the terms of the deal, Adidas will pay $59 per share for all of Reebok's outstanding stock, a premium of 34 percent on Tuesday's closing price"

I'm screwed now, my wife has been bugging me to buy RBK stock because the stuff has been selling so well, and I said,... yup, aha, sure, soon. Well, I guess that makes up for the time she wouldn't let me invest $1000 in a rinky dink salvage company owned by Mel Fisher. Does Spanish Gallion ring a bell. :o

[SR27 0]

lol

But like JimA said. They will probably let RBK be in certain if not all areas. Why would they knock the hype off of RBK hockey equipment a.t.m.? I think they will maybe try to put their brand into football especially. I think RBK is the exclusive equipper of the NFL Europe if I am not mistaken so that would be a logical step to challange their long time rival Puma.... but that´s just pure guessing. I`m not into this sort of stuff too much.

[RadioGaGa 162]

I think RBK is the exclusive equipper of the NFL Europe if I am not mistaken...

NFL & CFL as well. At least for jerseys/on field apparell.

[Scores 0]

adidas-Salomon to Acquire Reebok in $3.8 Billion Deal

SportsNewsSource Posted: 8/3/2005

Source: Sports Executive Weekly

The rumor wire heated up to a white hot level on Tuesday after being dormant for almost a year. The deal announced Wednesday morning goes beyond the sporting goods landscape in its scope and will have a much broader impact on the market. This may not come close to the level of the recently announced P&G/Gillette deal, but treat it in the same light as HP/Compaq, Wachovia/First Union, or a BofA/Fleet.

The Boards of adidas-Salomon AG and Reebok International Ltd. decided that adidas will acquire all of the outstanding shares of Reebok for $59.00 per share in cash. The offer price represents a premium of 34.2% over the closing price of Reebok’s stock on August 2, 2005. The transaction value is approximately €3.1 billion ($3.8 billion) including the assumption of net cash of €69 million ($84 million). The transaction is subject to the approval of Reebok’s shareholders as well as to the regulatory approvals and customary closing conditions. Both companies believe that the transaction will close in the first half of 2006.

The deal is an obvious move by both companies to attempt something radical in an attempt to gain some level of parity with Nike, Inc. Once Nike’s put in place a more aggressive global multi-brand strategy that had at its core the ability stratify the retail market by brand instead by segmented product or category, the game had clearly changed. Nike’s ability to position Starter at the base of the pyramid servicing the mass retail market, while using Converse to service the middle of the pyramid, gave Nike cover to focus brand efforts at the top of the model. Only problem fro the competition is that they didn’t have multiple brads to play with, and they didn’t have the depth of technology to play at different levels of the distribution matrix.

adidas will now have the ability to create a similar model, by using Reebok’s Logo Athletic brand in the mass channel, while Reebok can be used in the middle of the pyramid where it plays best. adidas can be positioned at the top of the model, further building brand cache. The other similarities are quite interesting as well. Nike and adidas each now have a golf division and both have a hockey division.

The deal, which would create a company with nearly 20% of the U.S. athletic-shoe market, is pending the approval of Reebok shareholders and anti-trust authorities. In the fiscal year ended Friday, Nike had $13.7 billion in revenue. Revenue for Reebok in 2004 was $3.8 billion, while Adidas' revenue was €6.5 billion, currently about $7.9 billion.

"With Reebok, we are advancing our position on the playing field of the sporting goods industry and are improving our financial strength to drive increased shareholder value," said Hainer in one AP report.

In the same report, Reebok chairman and CEO Paul Fireman said the deal would “put the company on track to take on Nike directly, among others.â€

"With Adidas, we are able to offer an enhanced portfolio of global brands that truly addresses the needs of today's and tomorrow's consumers," he said in the article. Reebok will continue to operate under its own name and its headquarters will remain in Canton, Mass. Adidas said it did not expect any significant reductions in the work forces of both companies after the acquisition. Merrill Lynch advised adidas-Salomon, and Credit Suisse advised Reebok.

>>> This will be an interesting one to watch. We’re not sure you can find two completely different cultures. Reebok is fairly loose and operates with perfection on the quarterly financial reporting cycle, a cycle that does not support the development and execution of long-term strategies. Everything rests solidly on the back of one guy, Paul Fireman. adidas, on the other hand, is seen as structured and disciplined and in some ways too rigid in its approach. Herbert Hainer relies very heavily on his team to develop and execute the long-term strategies for the brand. A strong number two guy already residing in the U.S. gives them solid leadership on the ground here. It will be interesting to see how these two blend over the next few years…

>>> Like all mergers, you do not need the duplication of functions that are glaringly obvious in this deal…

>>> How the brands come to market will now clearly be driven out of Germany…

[JGraz15 53]

So I have two questions:

How will this affect RBK hockey?

Will this change Adidas's run at Easton?

[Scores 0]

adidas will now have the ability to create a similar model, by using Reebok’s Logo Athletic brand in the mass channel, while Reebok can be used in the middle of the pyramid where it plays best. adidas can be positioned at the top of the model, further building brand cache.

According to the quote above, Adidas would be the top tier and NHL brand...but who ultimately knows what they will do. You can bet that Adidas execs are trying to figure that out in all sports that Rbk has a hold on, not just hockey.

As far as Easton...certainly a lot less $$ than Reebok. They could buy just to leverage the stick category, IF hockey is a focus for them. But I personally doubt they will go after Easton at this time. Unless, they want in baseball...ah, always an angle.

Remember, Adidas is based in Germany which is a pretty strong hockey country in terms of sales of hockey equipment and right in the middle of hockey in Europe. You can bet there are many execs at Adidas that wouldn't mind seeing the 3 stripes on hockey gear...

for what it is worth...

[JR Boucicaut 3804]

Last I heard that there isn't anything going on. Ma Easton nixed the deal - didn't want to sell the private business as she still had a stake in the company.

My take on RBK Hockey is that nothing changes. They will keep RBK as a pro league brand.

EDIT: Scores - where does that leave CCM if that is the case?

[Scores 0]

No idea on CCM...

If they take the BNH approach, they bury it.

Or its just another brand in the mix...where and at what level, who knows?

[JR Boucicaut 3804]

I honestly don't think they are THAT stupid.

The logical thing would be to scrap RBK - but they've got too much invested in the whole Official Equipment Supplier for the NHL/NBA/NHL, so that is why I say they stay put and hands-off for now.

[modernice 0]

It won't affect hockey that much, I think

Although Adidas skates woule be cool!

especially if designed by yohji yamamoto Adidas by Yohji

[Scores 0]

I honestly don't think they are THAT stupid.

Are you calling me stupid? :lol:

[JR Boucicaut 3804]

Haha...you know it! Nike didn't handle that merger too well. You guys did ;)

[Scores 0]

[jbyun04 7]

so now what?

are gonna see the Adidas logo on the RBK jersies? Or since now RBK is owned by Adidas are they gonna keep RBK on the jersies and all of the other products and Adidas just make their own products?

[JR Boucicaut 3804]

Spent the morning talking to a couple of people from CCM/RBK - it was pretty unexpected (which means that the hockey part isn't very significant.) They don't see anything changing - they are excited about the RBK Hockey launch. It's all about the footwear and such. Hockey's a very small part of this pie.

LOL people woke me up to tell me this. Got a phone call at around 9:40 this morning from someone who left a message regarding this...lol leave me alone!

[jjtt99 0]

Yet another example of the big getting bigger. I tell ya, one day the world will be made up of two companies that own everything!!

JJ