New York-based Authentic Brands Group, which owns 30 iconic brands across nine segments in its portfolio, last week agreed to acquire Reebok from adidas Group for €2.1 billion ($2.46 billion) in a deal that’s expected to close in Q1/2022. The Three Stripes acquired the Vector brand for $3.8 billion in 2005 and has been actively seeking a buyer for Reebok since Feb. 2020.

In ABG, which filed for an initial public offering on July 6, Reebok gets a new parent with a different business model that could help fuel a resurgence for the label worldwide. Reebok annual sales declined 20 percent in FY20. Reports suggest the company will retain its Boston Seaport headquarters and President Matt O’Toole under ABG ownership.

Canadian Jamie Salter, who founded ABG in 2010, called the Reebok acquisition “an important milestone” in the company’ growth, adding, “We are committed to preserving Reebok’s integrity, innovation and values-including its presence in brick and mortar.”

Among the largest shareholders in Authentic Brands Group are Leonard Green & Partners, General Atlantic and Lion Capital. The company generated $489 million in revenue in FY20 and has adjusted EBITDA of $373 million, with some circles suggesting its valuation could hit $10 billion after the IPO.

ABG’s business model for its nine segments—luxury, fashion, street, active/outdoor, home, entertainment, living legends, media content and events/experiences—is licensing-based and poses less inventory and other risk to the firm. Reebok will be the fourth and biggest footwear brand in the portfolio, joining Tretorn, Airwalk, and Prince. In the sports/outdoor/apparel area, ABG also owns Spyder, Vision, Eddie Bauer, Volcom and Tapout.

Licensee and channel partners of Authentic Brands Group are responsible for sourcing, pricing, inventory management, stores, and product design with ABG holding the rights of approval. It is a formula that could help the Reebok brand swim upstream again in numerous global markets.