HERZOGENAURACH, Germany (BRAIN)—Adidas announced Thursday that it signed a share purchase agreement to acquire outdoor action sports brand Five Ten.
“We are very excited to join forces with Five Ten. Five Ten is a leading brand in the technical outdoor market and within the outdoor action sport community,” said Rolf Reinschmidt, adidas Outdoor’s senior vice president, in a press release.
Adidas intends to purchase the entire Five Ten business including all issued share capital of Five Ten USA. The total purchase price is $25 million. The transaction is expected to close in the next couple of weeks.
Five Ten’s launch of its Stealth high-friction rubber compound for the rock climbing market in 1985 put the family owned company on the map. The company employs 37 people at its Redlands, California, headquarters. In 2011, annual net sales are expected to reach approximately $22 million, excluding distributor business in Japan and Korea. The company makes shoes for BMX, freeride and fixed-gear riders.
The adidas Group expects sales in the outdoor segment to exceed $687.1 million (500 million euros) by 2015. The acquisition of Five Ten helps put the company closer to this goal.
“The deal provides exciting prospects for Five Ten. Supported by the adidas Group, we can finally reach the full potential that the ‘Brand of the Brave’ has to offer,” said Charles Cole, Five Ten’s founder and president, in a press release.