Adidas is a German multinational best known as a designer and manufacturer of sportswear and related accessories. It was founded in 1924 in the Bavarian town of Herzogenaurach, Germany, and did not take on the Adidas name until 1949. The new company, known today as Adidas AG, is the holding company for the Adidas Group and the sole owner of Adidas. Some of the company’s largest shareholders include: Groupe Bruxelles Lambert SA (7.6%), Nassef Sawiris (3.3%), and Norges Bank Investment Management (2.8%).
Early years
The Adidas story starts with Adolf Dassler. Known as “Adi” to his friends, Dassler made sports shoes in his mother’s laundry and was soon joined in the business by his elder brother Rudolf.
The resultant company became known as Gebrüder Dassler Schuhfabrik, translated as the Dassler Brothers Shoe Factory.
Adi was involved in the development of spiked running shoes for athletics made from canvas and rubber that were an improvement over older models.
He convinced sprinter Jesse Owens to wear them at the 1936 Berlin Olympics, and when Owens won four gold medals, the Dassler name became synonymous with world sportsmen.
Before the outbreak of World War II, the Dassler brothers were already selling over 200,000 pairs of shoes each year.
Adidas is born
After the war in 1948, the Dassler brothers held different views on how the business should be run and decided to part ways.
Adolf founded Adidas from the first six letters in Adi Dassler, while Rudolf decided to found Ruda (later Puma) around the same time.
In the late 40s, 50s and 60s, Adidas and Puma became fierce and bitter rivals.
The Adidas logo
The first iteration of the Adidas 3-stripe logo was acquired from Finnish footwear brand Karhu Sports in 1952 for the equivalent of €1600 and two bottles of whiskey.
This was superseded by the more recognizable trefoil logo that was designed in time for the 1972 Munich Olympics.
The mountain logo was then introduced in 1991, followed by the neo-circle in 2002 and the word-mark in 2005.
Today, the company uses various iterations of its logo according to the product category. The trefoil design, for example, is used for lifestyle and casual wear, while the neo-circle tends to be used for lifestyle collaborations.
Who owns Adidas today?
After Horst Dassler (son of Adolf) passed away in 1987, French industrialist and investor Bernard Tapie purchased an 80% stake in Adidas worth around $290 million.
Unable to meet the interest on the loan he used to fund the purchase, Tapie mandated that French bank Crédit Lyonnais handle its sale.
In an unusual move, Crédit Lyonnais then converted the debt it took on into equity in Adidas.
The bank had tried to assist Tapie as a personal favor because he was Minister of Urban Affairs in France at the time.
But it was to no avail. Tapie went bankrupt in 1994 and Crédit Lyonnais sold Adidas to an assortment of investors for a profit.
The new company, known today as Adidas AG, is the holding company for the Adidas Group and the sole owner of Adidas. Some of the company’s largest shareholders include:
- Groupe Bruxelles Lambert SA (7.6%).
- Nassef Sawiris (3.3%), and
- Norges Bank Investment Management (2.8%).
Key takeaways
- Adidas is a German multinational best known as a designer and manufacturer of sportswear and related accessories. It was founded in 1924 in the Bavarian town of Herzogenaurach, Germany.
- Adidas was known as Gebrüder Dassler Schuhfabrik until 1948 when co-founders the Dassler brothers disagreed over the direction of the business and started their own companies. From this disagreement would emerge Adidas and Puma, with the two becoming bitter rivals over the next few decades.
- After Horst Dassler (son of Adolf) passed away in 1987, French industrialist and investor Bernard Tapie purchased a controlling stake in the company. However, he went bankrupt in 1994 and creditor Crédit Lyonnais sold Adidas to an assortment of investors for a profit.
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