Sold to private equity firm

Xavier Trudeau
Mai 12, 2017

TaylorMade, Ashworth and Adams have been sold to private equity firm KPS Captial Partners for $425m nearly a year to the day after adidas Group put them up for sale.

The German apparel giant first announced its plans to shop the units last May, and at the time said a sale of the golf equipment brands would allow it to focus on core offerings.

TaylorMade and the accompanying subsidiary golf brands have been for sale since May 2016, part of Adidas's efforts to shed operations that aren't central to its footwear and sporting-apparel businesses.

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Adidas is not the only company that has been struggling to bring in business within the golf industry. We have seen the unbundling of some TaylorMade-Adidas golfers in the recent years - most notably Day who signed a contract with Nike to wear apparel and shoes at the beginning of 2017.

The future of the Adams and Ashworth brands is also unknown. An ESPN examination of the Adidas move notes that although first-time golfer tallies hit a record 2.5 million past year, keeping the newbies courting clubs and related gear has proven hard.

The divestiture includes the TaylorMade, Adams Golf and Ashworth brands, which will be offloaded to buyout firm KPS Capital Partners. Adidas can focus on its burgeoning footwear business, while KPS Capital Partners was able to acquire a leading golf brand that does north of $500 million per year in revenues. Past year combined sales fell by one per cent.

Adidas said that around half the $425m would be paid in cash and the rest in a combination of secured note and contingent considerations.

The deal came just a day after the sport's world number two Rory McIlroy signed an equipment deal worth $100 million over a decade with TaylorMade. Sergio Garcia, a longtime TaylorMade endorser, won the Masters last month. All six are ranked in the top 12 in the world.

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