Authentic Brands Group’s €2.1 Billion Acquisition of Reebok

Authentic Brands Group's €2.1 Billion Acquisition of Reebok

Hengeler Mueller advised adidas on the transaction. Kirkland & Ellis advised Sycamore Partners. Willkie Farr & Gallagher advised CVC and Gainline/GIC/KKR. Latham & Watkins LLP represented ABG in the transaction. Fried Frank acted as counsel to BofA Securities, Inc. and Goldman Sachs Bank USA as financial advisors and lenders for the acquisition financing.

Adidas has entered into a definitive agreement on the sale of Reebok to Authentic Brands Group (ABG) for a total consideration of up to EUR 2.1 billion. The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022.

With the sale, Reebok will become part of a retail conglomerate that has snapped up many bankrupt brands such as Brooks Brothers, Aeropostale and Forever 21. Authentic.

The financing provided by BofA and Goldman Sachs consisted of an incremental senior secured first lien term loan facility in an aggregate principal amount of US$1.4 billion. 

Adidas AG is a Germany-based company that designs, develops, produces and markets a range of athletic and sports lifestyle products.

Reebok International Ltd. designs and markets sporting and athletic apparel. The Company offers footwear, clothing, and accessories for mens, womens, and kids. Reebok International serves customers worldwide.

Authentic Brands Group is a brand development, marketing and entertainment company.

The Hengeler Mueller team was led by partners Matthias Hentzen (Picture) and Martin Ulbrich and included partners Christian Möller (all Corporate/M&A), Thorsten Mäger (Antitrust), Vera Jungkind (Public Law) (all Düsseldorf), Simon Patrick Link (Corporate), Markus Ernst (Tax) (both Munich), Heinrich Knepper and Daniela Böning (both Financing, Frankfurt), counsel Gunther Wagner (Tax, Munich), Patrick Wilkening, Astrid Harmsen, Andrea Schlaffge as well as associates Tianyuan Zhuang (all IP/IT, Düsseldorf), Maike Hölty, David Annussek, Mike Steffen, Maxi Ludwig, Sahar Said, Tim Fabian Walter (all Corporate/M&A), Anja Balitzki (Antitrust), Michael Schramm (Public Law) (all Düsseldorf), Sebastian Adam (Tax) and Selina Rohr (Employment) (both Frankfurt).

The Kirkland & Ellis team included Dr. Benjamin Leyendecker (Lead; M&A), Mikaal Shoaib, Sean D. Rodgers, Will Mabry (all M&A), Judson A. Oswald (Finance), Dr. David Huthmacher (M&A), John Patten, Max Harris (IT/IP).

The Willkie Farr & Gallagher team advising CVC included Georg Linde, Dr. Matthias Schudlo (beide Private Equity), Dr. Jasmin Dettmar (Bank- und Finanzrecht) and Associate: Karsten Silbernagel (Private Equity).

The Willkie Farr & Gallagher team advising  Gainline/GIC/KKR included Dr. Kamyar Abrar, Dr. Michael Ilter, Andreas Feith (all Private Equity), Dr. Patrick Meiisel (Tax).

The inhouse team at Adidas included Jan Heinemann (General Counsel), Fabian Walla, Falk Böhm, Catherine Roseveare.

The inhouse team at ABG was led by Jay Dubiner.

Latham & Watkins LLP represented ABG in the transaction with a corporate deal team led by New York partner Justin Hamill, Düsseldorf partner Heiko Gotsche, and New York counsel Michael Anastasio, with Frankfurt partner Oliver Felsenstein, London partner Edward Barnett, New York partner Jeffrey Tochner, and Frankfurt counsel Christina Mann. Advice was also provided on tax matters by Chicago partner Joseph Kronsnoble, Munich partner Stefan Süss, and London partner Sean Finn; on antitrust matters by Brussels partner Héctor Armengod and Washington D.C. counsel Peter Todaro; on finance matters by New York partner Joshua Tinkelman; on employment matters by New York partner Austin Ozawa and Munich partner Tobias Leder; on regulatory matters by Frankfurt counsel Thies Deike; and on data privacy matters by Bay Area counsel Robert Blamires.

The Fried Frank team was led by corporate partners Daniel J. Bursky, Mark Hayek, and Ezra Schneck, and included tax partner Joseph E. Fox, corporate special counsel Brian C. Drozda, corporate associate Erica Perlmutter, and tax associate Bruce M. Wilson.

Involved fees earner: Daniel Bursky – Fried Frank Harris Shriver & Jacobson; Brian Drozda – Fried Frank Harris Shriver & Jacobson; Joseph Fox – Fried Frank Harris Shriver & Jacobson; Mark Hayek – Fried Frank Harris Shriver & Jacobson; Erica Perlmutter – Fried Frank Harris Shriver & Jacobson; Ezra Schneck – Fried Frank Harris Shriver & Jacobson; Bruce Wilson – Fried Frank Harris Shriver & Jacobson; Sebastian Adam – Hengeler Mueller; David Annussek – Hengeler Mueller; Anja Balitzki – Hengeler Mueller; Daniela Böning – Hengeler Mueller; Markus Ernst – Hengeler Mueller; Astrid Harmsen – Hengeler Mueller; Matthias Hentzen – Hengeler Mueller; Maike Hölty – Hengeler Mueller; Vera Jungkind – Hengeler Mueller; Heinrich Knepper – Hengeler Mueller; Simon Patrick Link – Hengeler Mueller; Maxi Ludwig – Hengeler Mueller; Thorsten Mäger – Hengeler Mueller; Christian Möller – Hengeler Mueller; Selina Rohr – Hengeler Mueller; Sahar Said – Hengeler Mueller; Andrea Schlaffge – Hengeler Mueller; Michael Schramm – Hengeler Mueller; Mike Steffen – Hengeler Mueller; Martin Ulbrich – Hengeler Mueller; Gunther Wagner – Hengeler Mueller; Tim Fabian Walter – Hengeler Mueller; Patrick Wilkening – Hengeler Mueller; Tianyuan Zhuang – Hengeler Mueller; Max Harris – Kirkland & Ellis; David Huthmacher – Kirkland & Ellis; Benjamin Leyendecker – Kirkland & Ellis; Will Mabry – Kirkland & Ellis; Judson Oswald – Kirkland & Ellis; John Patten – Kirkland & Ellis; Sean Rodgers – Kirkland & Ellis; Mikaal Shoaib – Kirkland & Ellis; Michael Anastasio – Latham & Watkins; Héctor Armengod – Latham & Watkins; Edward Barnett – Latham & Watkins; Robert Blamires – Latham & Watkins; Thies Deike – Latham & Watkins; Oliver Felsenstein – Latham & Watkins; Sean Finn – Latham & Watkins; Heiko Gotsche – Latham & Watkins; Justin Hamill – Latham & Watkins; Joseph Kronsnoble – Latham & Watkins; Tobias Leder – Latham & Watkins; Christina Mann – Latham & Watkins; Austin Ozawa – Latham & Watkins; Stefan Süss – Latham & Watkins; Joshua Tinkelman – Latham & Watkins; Jeffrey Tochner – Latham & Watkins; Peter Todaro – Latham & Watkins; Kamyar Abrar – Willkie Farr & Gallagher; Jasmin Dettmar – Willkie Farr & Gallagher; Andreas Feith – Willkie Farr & Gallagher; Michael Ilter – Willkie Farr & Gallagher; Georg Linde – Willkie Farr & Gallagher; Patrick Meiisel – Willkie Farr & Gallagher; Matthias Schudlo – Willkie Farr & Gallagher; Karsten Silbernagel – Willkie Farr & Gallagher;

Law Firms: Fried Frank Harris Shriver & Jacobson; Hengeler Mueller; Kirkland & Ellis; Latham & Watkins; Willkie Farr & Gallagher;

Clients: Adidas; Authentic Brands Group; Bank of America Securities; CVC; Gainline Capital Partners LP; GIC Private Limited; Goldman Sachs Bank USA; KKR; Sycamore Partners;

Author: Federica Tiefenthaler