Aditya Birla Fashion & Retail Ltd. (ABFRL) said it had entered into a long-term licensing agreement with Authentic Brands Group (ABG), a global brand development, marketing and entertainment company, to acquire exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and other ASEAN countries.
Currently, Reebok brand is owned by Adidas. The transfer of ownership of the Reebok brand from Adidas to ABG is expected to close in Q1 of 2022. The deal marks ABFRL’s foray into India’s fast-growing sports and activewear segment.
“This segment is expected to grow to $13 billion by FY24 at an annual growth rate of 14%. The transaction marks a significant milestone in the journey of ABFRL, which has evolved its portfolio into a powerhouse of brands across all major fashion and lifestyle segments over the last several years,” the company said in a statement.
“The addition of Reebok would fill an important white space in ABFRL’s portfolio,” it added.
“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 among Indian youth,” said Ashish Dikshit, MD, ABFRL.
“This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces,” he added.
ABFRL will partner with Reebok Design Group (RDG), the newly-established global brand hub based in Boston, on all product design, development, innovation and creative direction to drive a unified brand voice and vision.
Corey Salter, Chief Operating Officer, Authentic Brands Group said, “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 proposed transaction is subject to the successful completion of due diligence, necessary statutory approvals, and signing of definitive agreements.
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