Yahoo Finance ABG Signs Long-term Partnership With SPARC Group for Reebok in the U.S.
Authentic Brands Group has signed a long-term strategic partnership with SPARC Group to become the core licensee and operating partner for Reebok in the U.S.
SPARC, a leading retail enterprise, will oversee sourcing, manufacturing, branded retail stores, e-commerce operations and wholesale distribution for Reebok in the U.S. Categories include footwear for women, men and kids and lifestyle and active apparel for women and men.
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ABG’s SPARC division is a 50-50 partnership with Simon Property Group. SPARC’s portfolio includes Eddie Bauer, Brooks Brothers, Aéropostale, Forever 21, Lucky Brand and Nautica.
The addition of Reebok will increase SPARC’s store count to 1,600 doors, expand its e-commerce platform to more than $1 billion and bring its total retail sales to approximately $5.5 billion.
SPARC will also serve as the global hub for the newly created Reebok Design Group. RDG will be responsible for all design, development, innovation and creative services to partners around the world, ensuring the brand’s history, vision and ethos is maintained. All of these functions will continue to run out of Reebok’s global headquarters in Boston, led by Matt O’Toole, president and Todd Krinsky, senior vice president and general manager.
“Reebok is the most monumental acquisition in ABG’s history,” said Jamie Salter, founder, chairman and chief executive officer of ABG. “Because of the reach of Reebok’s business around the globe, an essential part of the strategy was to maintain the brand hub that supports and guides a global partner network to preserve and nurture the brand’s heartbeat and unmistakable DNA. Starting with SPARC for the U.S., we are assembling a network of strategic operating partners around the world who are committed to supporting the brand’s innovation, integrity and values. We are excited about the expertise that RDG will continue to infuse into the future of Reebok.”
Marc Miller, CEO of SPARC, added, “These are exciting times for SPARC. We are pleased to welcome the Reebok team and bring one of the world’s most iconic athletic brands into the portfolio. This strategic agreement adds footwear as a transformative new vertical to SPARC’s expanding brand platform, with pillars including Lifestyle and Fashion, comprised of Nautica, Aéropostale, Lucky Brand and Forever 21; American Luxury, which boasts Brooks Brothers; and Sports and Outdoor, newly anchored by Reebok and complemented by Eddie Bauer.”
O’Toole added that he’s excited for the drive and support that SPARC will deliver to the Reebok team. “Both partners bring significant expertise in global brand building, marketing and retail. Together we intend to position Reebok for growth and to compete and win in a digitally driven, omnichannel world,” he said.
In addition to securing Reebok’s U.S. operation, ABG has also signed leading partners for key regions, including The Falic Group for Latin America, excluding Mexico, Brazil and Argentina, Accent Group Ltd. for Australia and New Zealand, and MGS for Israel.
The Falic Group will oversee Reebok’s retail stores, e-commerce operations and wholesale distribution in the Latin American region. Accent Group plans to grow the brand in Australia and New Zealand through its existing wholesale accounts, direct online sales and multibrand retail banners. MGS, which has been Reebok’s core operating partner in Israel for the past two decades, has signed a new partnership with ABG to continue its commitment to strengthening and growing Reebok across all channels in the region.
SPARC, The Falic Group, Accent Group Ltd. and MGS will partner with RDG to evolve the product design, development, innovation and creative direction for each region, while preserving a unified brand voice and vision.
Nick Woodhouse, president and chief marketing officer of ABG said, “Reebok is a remarkable brand and onboarding it to ABG’s platform is being made possible through a collaborative effort by SPARC, RDG and our new regional partners. We look forward to working together to position the brand for long-term growth.”
The agreements become effective upon the completed transfer of ownership of the Reebok brand from Adidas to ABG. The deal, which was forged in August for $2.1 billion euros, is expected to close in the first quarter of 2022.
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