Galaxy will be handling the US alone but the UK and Europe through a joint venture.
Striking a deal with Authentic Brands Group (ABG), Galaxy Universal has acquired Reebok’s product creation, design and sourcing as well as its US footwear operations, retail stores and e-commerce. Moreover, Galaxy is forming GB Brands Europe Limited, a joint venture with Batra Group, to manage the brand’s business in Europe and the UK.
ABG is retaining ownership of Reebok’s intellectual property worldwide. According to Sports Business Journal, it will be retaining also the Reebok brand and the current CEO and President, Todd Krinsky, who took charge in September 2022 – about six months after ABG’s acquisition of the brand from Adidas. Reebok’s headquarters will remain in Boston. The financial terms of the deal are undisclosed.
The previous holder of the US license was Sparc Group, a joint venture established in 2020 between ABG and Simon Property Group. Sparc was set up to acquire distressed retail brands, such as Brooks Brothers, but not to target foot- or sportswear in particular. Simon has since gone away, departing in May 2024 by selling its stake in ABG (for about $1.2bn, according to Forbes).
Galaxy Universal, meanwhile, is a vertically integrated “footwear organization” and “brand management platform,” operating in the athletic, wellness, work and outdoor categories. It is owned by Gainline Capital Partners (of Stamford, Connecticut) and has wholesale distribution to about 80 countries and 60,000 retail points of sale. It owns the And1, Avia, Gaiam, Hi-Tec and Magnum brands and holds licenses for the Shaq, Quiksilver, Billabong, Lands’ End and Justice brands.
Galaxy’s new partner for Reebok Europe, Batra, is family owned and operates in brand licensing, design, sourcing and distribution in the EMEA region. Its brand portfolio includes Fila, Juicy Couture, Russell Athletic, Hunter Boots, Hi-Tec, Hoodrich, Pony and Sergio Tacchini.
The license holder for Europe and the UK under ABG was New Guards Group (NGG), part of Farfetch. ABG terminated this deal last November over a failure to “amend unfavorable economic terms.”
According to CityAM, Reebok generated sales of $20.5 million in the UK, $144.1 million in the US and $111.4 million in the rest of the world in 2023, the brand’s first year under the ownership of ABG. This compares with $11.1 million for the UK, $117.1 million for the US and $77.7 million for the rest of the world in the prior ten months to the end of 2022.
