American Sporting Goods to Buy Reebok Unit

IRVINE — American Sporting Goods Corp. said Tuesday it will acquire a subsidiary of Reebok International Ltd. for an undisclosed amount.

Reebok began looking for a buyer for the subsidiary, Avia Group International, in January, saying it wanted to focus its resources on its core brands, Reebok and Rockport. Avia, mainly a women’s athletic shoe company, has about 200 employees, mostly located in Portland, Ore.

American Sporting Goods owns and markets the Turntec and Nevados brands and holds the U.S. license for Ocean Pacific footwear. The acquisition, which is subject to antitrust approval, is expected to close by the end of next month.

Analysts have long called on Reebok to shed Avia, which was acquired in 1987 for a hefty $181 million, because it never generated substantial return. Annual sales at Avia peaked at $201 million in 1988. In 1995, Avia generated $129.6 million of Reebok’s $3.48 billion in revenue.

The president of American Sporting Goods, Jerome Turner, has 35 years’ experience in the athletic shoe industry, including about 20 years as an owner of Brooks Shoe Manufacturing Co. before he co-founded American Sporting Goods in 1984.