HERZOGENAURACH, Germany (Aug. 3)—Adidas-Salomon A.G. is buying Reebok International Ltd. for $3.8 billion, creating a sportswear company with annual sales of $11.1 billion.
The boards of directors of both companies have approved Adidas-Salomon´s $59 per-share offer, which represents a premium of 34.2 percent over the closing price of a Reebok share on Aug. 2, the firms said.
Adidas-Salomon is considered 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 $7.3 billion in 2004.
Canton, Mass.-based Reebok reported revenue last year of $3.8 billion from sales of sports, fitness and casual footwear, apparel and equipment under the Reebok, Rockport, CCM, Jofa, Koho and Greg Norman brands.