Adidas agrees South American venture
Tuesday 25th March 2008, 8:45AM GMT.
Sportswear group Adidas has raised its guidance for its Reebok segment after securing a joint venture with Vulcabras to distribute the brand in Brazil and Paraguay.
Consequently, the 2008 currency-neutral sales guidance for the Reebok segment has been raised to mid- to high-single-digit from low- to mid-single-digit. All other guidance for the adidas Group as provided on March 5th, 2008 remains unchanged, the company said.
Pedro Grendene Bartelle will be the president and the chairman of the new joint venture company, which will be governed by a board of directors to be comprised of Reebok and Vulcabras executives.
Financial results of the joint venture are planned to be fully consolidated within the Adidas Group as of April 1st, 2008. The joint venture agreement expires at the end of 2015.
Since 1992, Vulcabras has been the exclusive and independent distributor as well as a licensee of Reebok footwear and apparel products in Brazil and Paraguay. Vulcabras will continue to supply Reebok products to the joint venture company.
The transaction is subject to regulatory review in Brazil. Financial details of the transaction will be kept confidential.
Reebok and Vulcabras are also in negotiations to form a joint venture company in Argentina where a Vulcabras subsidiary has been the exclusive distributor of Reebok footwear and apparel since 2004.
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