European private equity firms "have been circling" Reebok as parent Adidas looks to "untether itself from the long-term, awkward relationship with its subsidiary," according to sources cited by Germano & Wiggins of the FINANCIAL TIMES. Sources said that PE firms Permira and Triton have "considered a move for Reebok," though they "warned that any plans were in the early, exploratory stages and there was no certainty that an offer from either firm would materialise." One source said that part of the appeal of Reebok to potential bidders was its "deep archive of classic footwear and apparel styles and the potential to draw on demand among younger consumers for 1980s-style retro trainers, raising their profile worldwide." Interest in the brand comes as Adidas "continues to evaluate its options for Reebok." A potential sale of Reebok, acquired in '06 for $3.8B and which recorded just $2B in revenues last year, "would mark the end of one of the most costly and ill-suited pairings in the history of the sports gear industry" (FINANCIAL TIMES, 11/8).
