Blog: Leonie BarrieAdidas bid rumours

Leonie Barrie | 18 April 2007

Hot on the heels of last week’s bid for Puma by PPR, Adidas is in the news amid renewed talk of private equity interest in the sportswear group. The rumours have been around for a while now, but analysts recently said they would be hard pushed to think of a private equity group with both the resources and an interest in the group.

Today, though, the name of that private equity firm emerged as Apax Partners, which was behind last year’s US$1.6bn acquisition of Tommy Hilfiger Corporation. The company is thought to be preparing a tender offer for 25% in Adidas as a precursor to an all-out bid – and tellingly, perhaps, didn’t deny the market speculation when contacted by just-style today.

However, Apax may not be alone in casting its eye over Adidas, since Mike Ashley, the founder of Sports Direct, bought a 3.14% stake in the business at the end of March and is now thought to be putting together his own consortium to make a bid for the European sports brand. But Adidas will not come cheap, and Mr Ashley will have to move quickly if he is to beat Apax.

Any take-over attempt is likely to value Adidas at more than EUR9bn, and could be welcomed by the firm, which is struggling to turn around its $3.8bn acquisition of Reebok last year. Other factors that make Adidas an attractive target are its international management team and relatively small German workforce, which are likely to shield it from a political backlash.

UK: Apax lines up 25% stake in Adidas


BLOG

Slowing economic growth weighs on 2020 sentiment

As we move into the final month of the year, it’s not surprising that anxiety and concern appears to be the prevailing mood across the fashion sector for 2020. A new report offers the ten trends set t...

BLOG

Sustainability is fast fashion’s Achilles heel

Two aspects of sustainability – environmental impact and worker well-being – are often buried under greenwashed marketing and feel-good statistics; the seeds of where fast fashion's demise have taken ...

BLOG

Vietnam's textile-garment plan hits hurdles

domestically-made textile inputs remains a major problem that continues to hinder clothing manufacturers in the country....

BLOG

Levi Strauss leads on green supply chain in China

Sustainability remains top of mind for the industry with Levi Strauss, Adidas and C&A ranked amongst the leading brands to have made progress in environmental supply chain management in China over the...

just-style homepage



Forgot your password?