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Friday, May 18, 2012, 11:07 PM Jackson Hole, Wyoming About ThoughtShaker

11.08.11 adidas buys 5.10

By Chris D.
adidas + 5.10
In another display of consolidation in the outdoor industry, Adidas announced last week that they would be purchasing the American climbing brand 5.10 for 25 million dollars. Best known for its climbing and mountain biking shoes, Five Ten will remain an independent brand with the existing set up in the US remaining the same. Charles Cole, founder and president of Five Ten, is staying on to lead the brand.

Adidas, who has clearly gone through some soul-searching in the last several years, has seemingly found it's stride again. In 2005, it sold Solomon and sub-brands (including Mavic, Bonfire, Arc'teryx and others) for $627 million. Then, Adidas decided in 2011 to re-launch it's Outdoor channel (think North Face style apparel), in North America. Less than a year after that, Adidas ponies up to acquire North America's biggest name in climbing footwear.

It's an interesting development for 5.10, whom will now have the horsepower to push their brand internationally and incorporate their rubber technology into one of the most well known athletic footwear companies in the world. All I have to say is congratulations and good luck: be sure to stay true to Cole's founding vision or North American climbers will migrate loyalties to the next homegrown up-and-comer.

As reported by the BOSS Report:

Only three years after its relaunch overseas, the unit reached €200 million in sales in 2010 and has reached sales of €300 million already in the first nine months of 2011, which included its re-launch in the U.S. this fall.

The acquisition of Five Ten is consistent with Adidas' long-term goal of establishing a leading position in the performance and technical outdoor sector, Rolf Reinschmidt, senior vice president Adidas Outdoor said. "Five Ten will allow Adidas to expand into a market that is complementary to our current product offering, most notably the technical climbing segment," said Reinschmidt. "We also see significant growth opportunities for Five Ten across the globe."

With the acquisition, Adidas also obtains the rights to Five Ten’s patented Stealth rubber technology and Reinschmidt expects this technology is transferable to numerous other applications with both Adidas Outdoor and Adidas' broader product offering.

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