adidas has expanded its South American partnership with Brazilian shoe company Vulcabras S.A.. The pair have now formed a joint venture to distribute Reebok footwear, apparel and accessories in Argentina. adidas said the transaction does not affect sales and profitability expectations for the Reebok segment in 2008. Previously, adidas AG and Vulcabras SA formed a joint venture to sell Reebok-made products in Brazil and Paraguay. Financial terms of the deal were not disclosed.
The joint venture company commenced operations June 2, 2008. Consequently, financial results of the joint venture will be fully consolidated within the adidas Group as of June 1, 2008. The joint venture agreement expires at the end of 2015.