Authentic Brands Group (ABG) last week submitted an offer of around $1 billion to acquire Reebok from Adidas, according to the New York Post. ABG reportedly plans to partner with Wolverine World Wide, the parent of Saucony, Merrell and Sperry, on the bid.

The offer, according to the New York Post, is worth “slightly more than US$1 billion.” Forbes reported last December that Adidas was seeking around $2.4 billion for Reebok.

Sources told the New York Post that Reebok’s steep losses mean potential buyers cannot borrow money to use toward the purchase, which could affect the deal’s value. Also complicating sales efforts is that Adidas will purportedly stop making Reebok’s footwear post-sale, requiring some bidders to partner first with footwear manufacturers.

ABG earlier this month said it partnered with Simon Property Group to acquire Eddie Bauer. Other purchases over the last two years include Brooks Brothers, Lucky Brand, Barneys New York. The licensing company’s overall roster of brands includes active lifestyle assets such as Spyder, Tapout, Prince and Volcom. Other fashion labels include Juicy Couture, Nine West and Frye.

On February 16, Adidas AG formally announced plans to divest its underperforming Reebok brand after announcing last December it had begun a review over a possible sale.

Private equity firm Apollo Global Management also purportedly made a non-binding offer for Reebok last week, the value of which has not been reported. The New York Post adds that all offers are currently contingent on due diligence, with final bids expected by late June.

Among possible strategic bidders cited in reports include Anta Sports and Li Ning, both based in China; and Korea’s Fila Holdings. Potential financial investors including TPG, Sycamore and Cerberus.

On its first-quarter conference call with analysts regarding Reebok, Harm Ohlmeyer, Adidas’ CFO, said, “I’m pleased to share that the brand experienced a sustainable business recovery in Q1 with net sales up double digits backed by a strong order book going into 21. The overall sales process is well on track and we are confident about the successful future of the brand and the team behind it.”

Ohlmeyer said Adidas “recorded strong interest during the completed phases of the sale process” with a promise to provide further details as the sales process progresses.

Photo courtesy Reebok