Sports giants Adidas have signed a US$25 million deal to buy sticky soled mountain bike shoe masters Five Ten. The acquisition, which is expected to be completed within weeks, is part of the German company's move towards become a "leading player" in the outdoor market.
Could this result in a range of Adidas-branded bike shoes to go with their Evil Eye glasses and goggles? It's not clear at this stage. The deal will certainly put more resources at Five Ten's disposal – Adidas employ 46,000 people worldwide, while Five Ten are a family-owned company with just 37 staff – and an injection of Adidas style might help win them some new fans in their core climbing and cycling markets.
According to a press release issued yesterday, Adidas intend to purchase all of the issued share capital of Five Ten USA. The $25m purchase price includes contingent payments, which are dependent on Five Ten achieving certain performance measures over the next three years.
“We're very excited to join forces with Five Ten," said Rolf Reinschmidt, senior vice president of Adidas's outdoor sports division. "Five Ten have continuously been at the forefront of innovations and share the same passion for athletes as we do at Adidas... This acquisition underscores our clear commitment to the outdoors and our ambition to play a leading role in the outdoor industry going forward."
“The deal provides exciting prospects for Five Ten," said company founder and president Charles Cole. "Supported by the Adidas Group, we can finally reach the full potential that the ‘Brand of the Brave’ has to offer."
Founded in 1985, Five Ten are based in Redlands, California. Their Stealth rubber soles brought them success in the climbing market and, more recently, with mountain bikers. After having great success on the World Cup circuit with the Impact, their flat pedal downhill shoe, they brought out some lighter weight Freeride models and some clipless pedal options. You can check out details of their 2012 range here.
Annual net sales for 2011 are expected to hit €16m – compared to sales of €12 billion in 2010 for the Adidas Group, who are based in Herzogenaurach, Germany and own brands including Reebok, TaylorMade and Rockport.