(CNN) — Adidas says it will offload struggling US fitness brand Reebok as part of a strategic overhaul.
The German sportswear company said in a statement on Tuesday that it has decided to begin a formal process “aimed at divesting Reebok” following a review of the business.
“After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” CEO Kasper Rorsted said. “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it,” he added.
The decision to sell Reebok was made as part of a new five-year strategy that Adidas will unveil on March 10.
Adidas said it will focus efforts on strengthening its own brand in the global sporting goods market. “The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” Rorsted said.
Adidas, which acquired Reebok in 2006 for $3.8 billion, will report the brand as “discontinued operations” from the first quarter of 2021.