Adidas Acquires Action Sports Brand

Sportswear giant Adidas has reached an agreement to acquire Five Ten, bronchi a leading performance brand in outdoor action sports, cheap in a US$25 million deal.

Adidas said its Strategic Business Plan Route identified outdoor sport as a key growth sector, and the manufacturer expects sales in this area to exceed Eur500 million ($690 million) by 2015. The takeover of Five Ten, a leading name in the outdoor market since the mid-1980s, is expected to close in the next two weeks.

Adidas Outdoor senior vice-president Rolf Reinschmidt said: “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. It represents an excellent addition to the Adidas Outdoor portfolio and will allow us to expand into complementary market segments.”

Charles Cole, founder and president of Five Ten Cole said the takeover would provide “exciting prospects for Five Ten”.

Adidas also announced that it had raised its sales and earnings outlook for the current year and that it expects earnings per share to increase by 10 percent to 15 percent in 2012. Adidas CEO Herbert Hainer said: “The traction we are gaining as we implement our strategies is especially pleasing as the external environment is not without its challenges, be it the economic uncertainty, stalling consumer confidence or struggling regional competitors.”