Aditya Birla bags Reebok marketing rights

Mumbai: In a major expansion into sportswear and lifestyle wear segment, the Kumar Mangalam Birla-led Aditya Birla Fashion & Retail has signed a long-term licensing agreement with Authentic Brand Group of New York, which has the marketing and branding rights of Reebok, to run the operations of the global sportswear, athletic and lifestyle major in the country and ASEAN markets.

The new agreement between the largest domestic multibrand fashion retailer and Authentic Brand is an extension of their existing relationship as ABFRL already markets and sells some ABG brands like Forever 21. The agreement follows the global transfer of ownership of the Reebok brand from Adidas to ABG, which is expected to close in the first quarter of 2022.

The deal is subject to customary closing conditions and due diligence, the companies said in a joint statement on Tuesday. The New York-based Authentic Brands Group is a global brand development, marketing and entertainment company that owns such rights of as many as 30 iconic global brands.

The long-term licensing agreement with Aditya Birla Fashion & Retail (ABFRL) grants it exclusive rights to distribute and sell Reebok products through wholesale, ecommerce and Reebok branded retail stores in India and other ASEAN countries, the companies said.

This deal marks Birlas’ entry into the fast-growing domestic sports and activewear segments and they expect the addition of the global marquee sports brand to fill an important white space in its portfolio.

Ashish Dikshit, managing director of ABFRL, said Reebok has built a very strong presence in the domestic market over the past two decades. In partnership with ABG, ABFRL plans to accelerate Reebok’s business, combining its global appeal and salience amongst youth, he added.

Earlier this year, the German sportswear major Adidas had announced that it had entered into a definitive agreement to sell Reebok to Authentic Brands Group for a total consideration of up to 2.1 billion euros. Adidas had bought the rival American brand Reebok in 2006. -(PTI)