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Five Ten purchased by Adidas

Mo(n)arch

Turbo Monkey
Dec 27, 2010
4,441
1,422
Italy/south Tyrol
For the Businessmonkeys:
adidas Group to acquire outdoor specialist Five Ten

adidas Group to acquire outdoor specialist Five Ten


Herzogenaurach / Redlands, California, November 03, 2011 – The adidas Group today announced that it has signed a share purchase agreement to acquire Five Ten, a leading performance brand in outdoor action sports. The adidas Group intends to purchase the entire Five Ten business, which includes all of the issued share capital of Five Ten USA. The total purchase price is USD 25 million in cash at closing and contingent payments, which are dependent on Five Ten achieving certain performance measures over the next three years. The transaction is expected to close in the next couple of weeks.

As part of its Strategic Business Plan Route 2015, the adidas Group expects sales in the outdoor segment to exceed € 500 million by 2015 based on organic growth. Through the acquisition of Five Ten, the adidas Group will be even better positioned towards the goal to become a leading player in the outdoor market.

“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. Climbers, mountain bikers and other outdoor athletes around the world highly value their products,” said Rolf Reinschmidt, Senior Vice President adidas Outdoor. “Five Ten has continuously been at the forefront of innovations and shares the same passion for athletes as we do at adidas. It represents an excellent addition to the adidas Outdoor portfolio and will allow us to expand into complementary market segments. This acquisition underscores our clear commitment to the outdoors and our ambition to play a leading role in the outdoor industry going forward. I am very much looking forward to working on this journey together with Charles Cole, Founder and President of Five Ten.”

“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,” commented Charles Cole, Founder and President of Five Ten. “Here at Five Ten, we like the philosophy of adidas’ founder Adi Dassler, with his focus on product quality and in doing whatever is necessary to give the athlete the advantage. adidas has the same principles of putting athletes and performance first that have guided Five Ten for nearly 30 years and we are thrilled to be partnering with them.”

Five Ten has been at the forefront of innovation in the technical outdoor market since the day Stealth, a revolutionary high-friction rubber compound, was created in 1985. Today, the Stealth product family includes more than half a dozen award-winning compounds that provide the highest friction to athletes in various conditions. The Five Ten Elite Team consists of some of the world’s most exciting athletes such as Dean Potter, National Geographic’s 2011 athlete of the year, JT Holmes, champion big-mountain skier and Suz Graham, the most versatile and progressive female action sports athlete in the world.

adidas is the athletic brand in the outdoors. It has a long history in innovative outdoor products including highlights such as the ‘Super Trekking’, the first light trekking shoe, being worn by climbing legend Reinhold Messner for his first Everest ascent without oxygen support in 1978. Its award-winning TERREX collection offers lightweight, technical equipment to athletes in the outdoors. The tradition of adidas founder Adi Dassler, who worked individually with athletes to make them better, continues today. adidas Outdoor has teamed up with top outdoor athletes like the Huber Brothers (Climbing, Germany), Beat Kammerlander (Climbing, Austria) and Barbara Zangerl (Climbing, Austria) as well as prestigious organizations such as Zermatt Alpin Center (Switzerland) and Ragni di Lecco (Italy).

About the adidas Group
The adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of products around the core brands: adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, the Group has more than 46,000 employees and generated sales of € 12 billion in 2010.

About Five Ten
Five Ten is a family-owned company that is dedicated to making the best outdoor sports footwear available. It offers innovative products to athletes in categories such as climbing and mountain biking. Five Ten was founded by Charles Cole in 1985, is located in Redlands, California and employs 37 people. In 2011, annual net sales are expected to be approximately € 16 million excluding distributor business in Japan and Korea.
Another sell out?
 

slyfink

Turbo Monkey
Sep 16, 2008
9,351
5,100
Ottawa, Canada
I think it's good news. now maybe function will meet style. IMO 98% of the 5.10 shoes were hideous (even though they performed well)
 

manhattanprjkt83

Rusty Trombone
Jul 10, 2003
9,646
1,217
Nilbog
I think it's good news. now maybe function will meet style. IMO 98% of the 5.10 shoes were hideous (even though they performed well)
I agree they are hurting in the style department but could see the mtb line falling off in importance to the brand. There was some huge momentum with the mtb stuff the past few years.
 

William42

fork ways
Jul 31, 2007
3,934
676
I'm pretty sure addidas is driven by bottom line and making money. 5.10 has a profitable MTB shoe division, and they've invested alot of money in developing it. It would be a silly move on addidas part to discontinue/let it sit by the wayside, and I'm fairly confidant that, as addidas has their own line of MTB shoes, they're interested in making money in that market. 5.10 has more clout then addidas when it comes to MTB/climbing/freerunning/hiking/generaloutdoors shoes, and if addidas was interested in 5.10 enough to purchas them, I think you can be fairly confidant that they're interested in having the go to shoe in those markets.

I guess what I'm repeatedly saying is, I suggest you rest easy and not start hoarding shoes, I only see them becoming more developed from here.
 

dump

Turbo Monkey
Oct 12, 2001
8,235
4,496
Adidas has flirted w/ cycling in the past, but this looks like a move to get into a somewhat specialized & technical area of shoes. Will be interesting to see what happens.
 

norbar

KESSLER PROBLEM. Just cause
Jun 7, 2007
11,374
1,610
Warsaw :/
I doubt they going to mess with a great business.

I'm happy. Maybe my bike shoes will stop looking hideous.
 

Mo(n)arch

Turbo Monkey
Dec 27, 2010
4,441
1,422
Italy/south Tyrol
Fiveten also makes shoes for clipless riding.:think:

I don't know. Maybe it's a good thing for mountainbiking. Adidas is sponsoring Richie Schley for example.

My hope is that fiveten will stand as an indipendent company. I don't want to have bikeshoes with stripes.
 

SuspectDevice

Turbo Monkey
Aug 23, 2002
4,173
380
Roanoke, VA
Adidas has flirted w/ cycling in the past, but this looks like a move to get into a somewhat specialized & technical area of shoes. Will be interesting to see what happens.
Adidas owned Mavic for about 5 years.
Don't worry y'all, 5.10 is going to be fine.
 

clarkenstein

Monkey
Nov 28, 2008
244
0
if (god forbid) 5.10 does end up disappearing, you could always get your favorite shoes resoled with the sticky rubber at a place like rock & resole. the focus is mainly climbing shoes but i'm pretty sure they would resole any sneaker with stealth rubber.
 

Raingauge

Monkey
Apr 3, 2008
692
0
Canadia
Hopefully they got a sh!tload of money and have a short duration non-compete agreement. Then if Adidas screws it up they can start over.
 

NoUseForAName

Monkey
Mar 26, 2008
481
0
Fiveten also makes shoes for clipless riding.:think:
I know that; however they are neither the only, nor the best option if clip comaptibility is your requirement from cycling shoes.

Adidas is similarly not the only or best option for cycling shoes with clips, and i am glad of that too.
 

SthFRider

Monkey
Apr 16, 2008
218
0
Atlanta,Ga
Five ten started out as a climbing shoe company that has branched out into approach shoes and trail running shoes. Then they dove into the riding shoes. Their climbing shoes is their biggest area for revenue by far. They have been the standard for climbing shoes since as long as i can remember. I've been climbing for the past 10 years and riding for the last 5 and I for one is slightly worried about this purchase. Time to stock up on impacts and climbing shoes.... I guess time will only tell.
 

WBC

Monkey
Aug 8, 2003
578
1
PNW
Problem is Adidas shoes absolutely suck. I've never seen a pair of Hematomas that didn't fall apart.
I don't know how you can complain about any other shoe's durability if you've owned 5.10's. Maybe they last longer in dry climates, but I rarely get more than 2-3 months out of a pair of 5.10's.

Hopefully Adidas recognizes that CS is a selling point, but also realizes they'll be bleeding money replacing their current offerings, and will use that info to make longer lasting shoes. And ps, I think it's really weird to worry about the style of your bike shoes - If you're trying to show off to the birds when you're riding bikes, I think you should reconsider and choose a sport that doesn't have a 15000:1 ratio.
 

CrabJoe StretchPants

Reincarnated Crab Walking Head Spinning Bruce Dick
Nov 30, 2003
14,163
2,484
Groton, MA
I don't know how you can complain about any other shoe's durability if you've owned 5.10's. Maybe they last longer in dry climates, but I rarely get more than 2-3 months out of a pair of 5.10's.
I ride clipless, so I've never owned a pair of 5.10s. I have seen those fall apart as well.
 

manhattanprjkt83

Rusty Trombone
Jul 10, 2003
9,646
1,217
Nilbog
what five tens are you guys running...I get 2 seasons at least out of my impacts...they are well made shoes. as far as the style thing goes...dont kid yourself its everywhere id rather have something look cool than be a clunky moon boot.
 

Dogboy

Turbo Monkey
Apr 12, 2004
3,209
585
Durham, NC
Five ten started out as a climbing shoe company that has branched out into approach shoes and trail running shoes. Then they dove into the riding shoes. Their climbing shoes is their biggest area for revenue by far. They have been the standard for climbing shoes since as long as i can remember. I've been climbing for the past 10 years and riding for the last 5 and I for one is slightly worried about this purchase. Time to stock up on impacts and climbing shoes.... I guess time will only tell.
My understanding (based on friends that work for Five Ten) is that the riding segment is way, way bigger than their climbing business.
 

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now
. And ps, I think it's really weird to worry about the style of your bike shoes - If you're trying to show off to the birds when you're riding bikes,
so how many pairs of these do you have?:rolleyes:



also 2-3 months out of a pair of shoes is pretty bad....just sayin