adidas has agreed to divest its Reebok business to brand management firm Authentic Brands Group (ABG) for up to €2.1bn ($2.4bn).

ABG will pay a large part of the purchase price in cash at the closing of the transaction, with the rest being paid through deferred and contingent consideration.

Adidas CEO Kasper Rorsted said: “Reebok has been a valued part of Adidas and we are grateful for the contributions the brand and the team behind it have made to our company.

“With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success.

“As for Adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share and create sustainable value for all of our stakeholders.”

ABG chairman and CEO Jamie Salter said: “It’s an honour to be entrusted with carrying Reebok’s legacy forward.

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“This is an important milestone for ABG and we are committed to preserving Reebok’s integrity, innovation and values, including its presence in bricks and mortar.

“We look forward to working closely with the Reebok team to build on the brand’s success.”

Adidas is expected to share a major portion of the cash proceeds gained from the sale with its shareholders.

The deal is expected to close in the first quarter of next year subject to customary conditions.

Last December, Adidas started reviewing strategic options related to the Reebok brand, which it acquired in 2006.

The divestiture will have no impact on Adidas’ 2025 financial target, which it announced in March as part of its Own the Game strategy.

The company’s full-year financial outlook for this year will also not be affected.

Earlier this month, Adidas posted positive second-quarter results, with its currency-neutral sales growing by 55%.