Adidas also raised its 2008 outlook for Reebok, saying it now expected sales to increase by between five and 10 percent, excluding foreign exchange effects. Reebok sales had previously been forecast to rise by between one and five percent this year.
Shares in Adidas leapt higher on the news, gaining 6.15 percent to €41.60 in early trading on the Frankfurt stock exchange, where the Dax index of leading shares was 3.09 percent higher overall.
The joint venture will begin operating on April 1 and terms of the agreement foresee it lasting until 2015. Reeboc and Vulcabras are also mulling a second joint venture to market products in Argentina.
Adidas bought Reebok in 2005 for €3.1 billion ($4.8 billion) to boost its market share in the United States and narrow the gap with rival Nike, but the brand's sales have proved sluggish.