Adidas announced on Tuesday that it would sell its US fitness brand Reebok, as part of a five-year strategy, which will be revealed on March 10.
The decision comes as part of the German sportswear company's strategic alternatives for Reebok to compete with other trending sportswear companies, specifically Nike.
According to Reuters, which cited a bank source, the business could be worth around 1 billion euros ($1.2 billion). Adidas will strengthen its own brand in the market after divesting Reebok.
Adidas bought Reebok in 2006 for $3.8 billion and will write-off the brand from the first quarter of 2021. Though Reebok generated almost a quarter of Adidas' overall revenue in 2007, it has been declining since 2020.
"Reebok and Adidas will be able to significantly better realize their growth potential independently of each other," Chief Executive Kasper Rorsted said in a statement.