Chris Henrys Dealer Posted August 3, 2005 Report Share Posted August 3, 2005 I wonder what the policy of the NFL will be....they chose Reebok over Nike and Adidas for league wide merchandising. Would they keep agreements in place, or open up the bidding process again? [quote]Adidas to Buy Reebok for $3.8 Bln to Challenge Nike (Update6) ListenListen Aug. 3 (Bloomberg) -- Adidas-Salomon AG, the world's second- largest sporting-goods company, agreed to buy Reebok International Ltd. for about $3.8 billion to narrow the gap with Nike Inc. Adidas is offering $59 for each share of Canton, Massachusetts-based Reebok, 34 percent more than yesterday's closing price. The combined company will have about $11.1 billion in sales, Adidas said, compared with Nike's $13.7 billion. Adidas's stock rose to the highest in more than seven years, while Reebok's jumped 24 percent in Europe. The purchase, Adidas's biggest since its 1998 acquisition of ski and golf-equipment maker Salomon, will double sales in the U.S., Nike's home market. It will also give Herzogenaurach, Germany-based Adidas, whose shoes are worn by soccer star David Beckham, a company with a bigger presence in American sports and culture, Chief Executive Herbert Hainer said in an interview. ``It propels them up in the U.S.,'' said Mark Hargraves, who helps manage $7.1 billion, including Adidas Salomon shares, at Framlington Group Plc in London. ``The U.S. market is historically where they've been under represented and it's been difficult to gain share. So in one jump it moves them up.'' Adidas shares rose 8.47 euros, or 5.7 percent, to 155.99 euros at 1:29 p.m. in Frankfurt, the highest sice July 2, 1998. Shares of Reebok of Reebok, whose endorsers include basketball player Yao Ming and rapper 50 Cent, climbed $13.88 to $57.83 in Germany. The acquisition will boost earnings in the first year and save 120 million to 125 million euros the first three, Hainer, 51, said. Second-quarter profit rose 34 percent to 94 million euros from 70 million euros a year earlier, Adidas said today in a statement. Analysts were expecting 82 million euros, according to the median of five estimates gathered by Bloomberg. Sales gained 8 percent to 1.52 billion euros. NBA, NFL Adidas's market share in the U.S. will double with the purchase, according to Christian Schindler, an analyst at Landesbank Rheinland Pfalz in Mainz, Germany, with an ``outperform'' rating on the stock. The company had an 8.9 percent share of the $8.9 billion wholesale U.S. athletic-shoe market last year, according to the industry newsletter Sporting Goods Intelligence. Reebok controlled 12 percent, and Beaverton, Oregon-based Nike had 36 percent. The transaction will give Adidas 28 percent of the global $11.5 billion athletic-shoe market, rivaling Nike's 31 percent and widening the lead over cross-town rival Puma AG. Adidas will get Reebok's clothing business, which includes licenses to outfit the National Football League and the National Basketball Association. In addition, Adidas will gain better negotiating power and more shelf space at retailers such as Foot Locker Inc., according to John Horan, publisher of Sporting Goods Intelligence, who's covered the industry for 27 years. World Cup ``Adidas on its own will probably never have a chance to pass Nike, but with Reebok now they can be a strong No. 2,'' said Andreas Inderst, an analyst with ABN Amro in London. Adidas and Nike also are becoming fiercer rivals in soccer in the run-up 2006 World Cup, to be held in Germany. Adidas, which sold 6 million Roteiro soccer balls and 1 million pairs of PredatorPulse shoes last year, has formed a 100-member team to plan for the event. The company will unveil the tournament ball in September and roll out merchandise including World Cup jerseys later this year. Adidas expects to complete the acquisition in the first half of 2006. The company said it plans to finance the transaction through capital increases and debt. Transaction Value Adidas is paying about 10.7 times Reebok's earnings before interest, taxes, depreciation and amortization and about 0.9 times revenue, according to Bloomberg data. It paid about 8.92 Ebidta and 1.1 times revenue for Salomon, which it agreed to buy in 1997 for as much as 8 billion French francs, or $1.34 billion at the time. ``At first glance, the price looked demanding, but taking into account the potential synergies and benefits the deal looks more attractive,'' ABN Amro's Inderst said. Reebok, whose shares had risen 30 percent the past year, said last month that second-quarter profit rose 71 percent, helped by gains in countries such as India and China and new Pump basketball shoes even as U.S. sales of its Classic footwear, the company's biggest business, declined. Adidas expects the acquisition to get Reebok investor approval and doesn't foresee any regulatory obstacles, Chief Financial Officer Robin Stalker said on a conference call with analysts. Hainer said on the call that Paul Fireman will continue as Reebok chief executive. Merrill Lynch advised Adidas-Salomon and CSFB advised Reebok on the transaction, according to today's statement.[/quote] [url="http://quote.bloomberg.com/apps/news?pid=10000103&sid=ao96SJ7YC_gs&refer=news_index"]http://quote.bloomberg.com/apps/news?pid=1...efer=news_index[/url] Link to comment Share on other sites More sharing options...
sean Posted August 3, 2005 Report Share Posted August 3, 2005 Only 2??? Are you forgetting about Kangaroo's and Puma's? Link to comment Share on other sites More sharing options...
Guest mongoloido Posted August 3, 2005 Report Share Posted August 3, 2005 Puma rules. Link to comment Share on other sites More sharing options...
Jamie_B Posted August 3, 2005 Report Share Posted August 3, 2005 I like Vans myself. Link to comment Share on other sites More sharing options...
sean Posted August 3, 2005 Report Share Posted August 3, 2005 Remember the [url="http://www.zappos.com/n/es/d/722001412/page/1.html"]ROOS[/url]? I used to keep my lunch money in the pocket. Link to comment Share on other sites More sharing options...
Guest mongoloido Posted August 3, 2005 Report Share Posted August 3, 2005 [quote name='sean' date='Aug 3 2005, 03:36 PM']Remember the [url="http://www.zappos.com/n/es/d/722001412/page/1.html"]ROOS[/url]? I used to keep my lunch money in the pocket. [right][post="123796"][/post][/right][/quote] Had grey ones and blue ones during my childhood. My mom made me keep an emergency quarter in them for phone calls... Much more than a quarter though and it would hurt my feet when I ran. Link to comment Share on other sites More sharing options...
sean Posted August 3, 2005 Report Share Posted August 3, 2005 [quote name='mongoloido' date='Aug 3 2005, 02:19 PM']Puma rules. [right][post="123773"]<{POST_SNAPBACK}>[/post][/right][/quote] Only if they were suede and you had fat laces. And you better never have tied the mothafuckas Link to comment Share on other sites More sharing options...
Guest steggyD Posted August 3, 2005 Report Share Posted August 3, 2005 [quote name='Jamie_B' date='Aug 3 2005, 03:23 PM']I like Vans myself. [right][post="123777"]<{POST_SNAPBACK}>[/post][/right][/quote] Yes, gotta pair of Vans. Most comfy shoes I have ever owned. It's like walking in rolls of cotton, seriously. Link to comment Share on other sites More sharing options...
Jamie_B Posted August 3, 2005 Report Share Posted August 3, 2005 [quote name='steggyD' date='Aug 3 2005, 04:52 PM']Yes, gotta pair of Vans. Most comfy shoes I have ever owned. It's like walking in rolls of cotton, seriously. [right][post="123880"]<{POST_SNAPBACK}>[/post][/right][/quote] Yep, bought a pair a few years ago while we had a skate shop in our local mall (gone now) and will not buy anything else, its like Im walking on charmin. Link to comment Share on other sites More sharing options...
sean Posted August 4, 2005 Report Share Posted August 4, 2005 [quote name='Jamie_B' date='Aug 3 2005, 03:53 PM']Yep, bought a pair a few years ago while we had a skate shop in our local mall (gone now) and will not buy anything else, its like Im walking on charmin. [right][post="123881"]<{POST_SNAPBACK}>[/post][/right][/quote] Had a pair of Vans. They had a super thick tongue and were the most uncomfortable gym shoes I've ever worn. Link to comment Share on other sites More sharing options...
Nati Ice Posted August 4, 2005 Report Share Posted August 4, 2005 thats prolly cuz they werent gym shoes [img]http://forum.go-bengals.com/public/style_emoticons/<#EMO_DIR#>/3.gif[/img] Link to comment Share on other sites More sharing options...
Guest steggyD Posted August 4, 2005 Report Share Posted August 4, 2005 No shit. You don't go playing B-ball in Vans shoes... Link to comment Share on other sites More sharing options...
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