September 18, 1997 in Nation/World

Adidas To Buy Salomon Sa For $1.5 Billion

Associated Press

Adidas AG is buying French ski-maker Salomon SA in a $1.5 billion deal that will create Europe’s largest manufacturer of sportswear and equipment.

The two companies have combined annual sales of 6.2 billion marks, or about $3.5 billion, Adidas said.

Adidas-Salomon AG, with combined revenues of $5.1 billion, would move past Reebok International Ltd. into the industry’s second slot behind Nike’s $9.19 billion empire.

Analysts call the purchase Adidas’ boldest move yet in its drive to take on Nike.

Adidas, known for shoes and sportswear, has its main market in Europe. Salomon, which has expanded beyond making skis into golf and cycling equipment, has a strong position in North America and Japan.

Adidas said it has signed a deal to take over Salomon with Sport Development, the main shareholder.

© Copyright 1997 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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