Adidas (ADDYY) has reached an agreement to sell Reebok to Authentic Brands for nearly $2.5 billion, in a majority cash deal.

The German sports retailer bought Reebok in 2006 for $3.8 billion to help compete against Nike (NKE). However, after 15 years of lower-than-expected sales, its ready to part ways with the American brand.

“Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success," said Kasper Rorsted, CEO of Adidas AG, in a statement.

“As for Adidas, we will continue to focus our efforts on executing our “Own the Game” strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders,” Rorsted added.

Rick Helfenbein, retail & fashion industry consultant and former CEO of the American Apparel & Footwear Association, tells Yahoo Finance that is an excellent opportunity for its new owner.

“Authentic Brands purchasing of Reebok is really excellent news for a highly valued name. The industry wisdom is that brands only die in their owner’s mind, while the public at-large is generally unaware of inter-company transactions. With the muscle behind Authentic Brands, expect Reebok to become a front runner in a very active market,” said Helfenbein.

The deal is expected to close in the first quarter of 2022. BlackRock-owned (BLK) Authentic Brands Group is no stranger to apparel and footwear space with Aéropostale, Airwalk and IZOD under its fold.

Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.

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