Merrill Lynch
adidas breaks into the US
What happened?
Merrill Lynch discussed with adidas the options available to them in order to achieve their objective. They agreed that the best solution would be to merge with or buy a brand that was already well known in the US. Merrill Lynch and adidas worked together to pinpoint what company they should look into taking over and how to do it.
Reebok was identified as the best US partner for adidas. adidas approached Reebok´s largest shareholders and began talks. These talks centred on the value and the structure for the new group.
Reebok is the third largest sports footwear and clothing manufacturer in the world. Sales in 2004 totalled approximately $3.8 billion.
Log on to www.reebok.com to find out more about Reebok. Here is a summary of the company’s financial circumstances at the time of the bid.
Reebok International Ltd.
Financial Summary
| Twelve months ending December 31 | 2003 | 2004 |
|---|---|---|
| Net sales | 3,785,284,000 | 3,485,316,000 |
| Net income/profit | 192,425,000 | 157,254,000 |