Adidas AG agreed to promote its underperforming Reebok enterprise to Genuine Manufacturers Group Inc. for as much as 2.1 billion euros ($2.5 billion), including one other well-known title to the customer’s rising lineup of attire manufacturers.

Nearly all of the share value shall be paid in money at closing, with the remainder coming as deferred and contingent consideration, the businesses stated Thursday in an announcement. The deal is anticipated to shut within the first quarter of 2022.

The German sportswear big formally started a divestiture of Reebok early this 12 months after attempting to revive the model’s efficiency for greater than a decade. Genuine Manufacturers, which filed not too long ago for an preliminary public providing within the U.S., has already acquired greater than 30 manufacturers, together with bankrupt belongings equivalent to Barneys New York. Its portfolio corporations embody Brooks Brothers, Ceaselessly 21 and Sports activities Illustrated.