Case Study Abstract

This case study highlights the merger between German sportswear-maker Adidas and Reebok to take on market leader Nike in 2005. Will Adidas’ $3.7 billion takeover of Reebok in 2005 be successful or is it hampering the German sportswear-maker’s performance?

Table of Contents

  1. Introduction
  2. Taking on Nike – market leader in the U.S.
    Regulatory Issues – EU clears the Adidas-Reebok merger
    Adidas plus Reebok is equal to better competition with giant Nike
    Post-Merger and Integration Issues
    Adidas-Salomon Group five-point strategy in 2005

  3. Exhibit I: Adidas major locations in 2005
  4. Management Case Study on meger between Adidas and Reebok

  5. Adidas-Reebok combo synergy – Did the merger make sense?
  6. Affordable shoes
    Growing the Adidas brand
    Cost Efficiencies
    Cutting-edge technologies, innovative products and celebrity brand ambassadors
    New business opportunities
    A more geographically balanced sales mix

  7. M&As in the sporting goods industry during the late 1990s and the early 2000s
  8. Adidas Reebok Merger Fact sheet
  9. Exhibit II: The Reebok acquisition according to Herbert Hainer, Chairman and CEO of adidas-Salomon AG
  10. Industry Analysis – Athletic apparel and footwear industry, Sporting Goods in the U.S
  11. Competitive Landscape in 2005/6 – Sporting Goods Industry
  12. Is the merger successful?
  13. Strong competition from Nike
    Adidas – Fourth Quarter 2007 performance
    Adidas vs. Reebok unit performance in 2007

  14. Reebok History – Timeline
  15. Adidas History – Timeline
  16. Financial Analysis – Nike, Reebok, and Adidas in 2004
  17. Exhibit III: Market Analysis – Nike, Reebok, and Adidas in 2004
  18. Exhibit IV: Adidas-Salomon – Five year financial summary
  19. Adidas-Salomon – Financial Data – 2004, 2005
  20. Adidas Group – Financial Data – 2007, 2006
  21. Reebok – Financial Data
Case Study Keywords: Adidas, Reebok, Nike, Mergers and Acquisitions, M&A, Sporting goods, Athletic Apparel, shoes, corporate takeover

Case Questions for Discussion