Adidas has entered into a definitive agreement to sell its TaylorMade, Adams Golf and Ashworth golf brands to a newly-formed affiliate of New York-based investment company KPS Capital Partners, LP for a total consideration of US$425 million… around half of which will be paid in cash with the remainder in a combination of secured note and contingent considerations.
The transaction, which is subject to customary closing conditions, is expected to be completed later this year.
“TaylorMade is a leading global golf brand with an exceptionally strong market position. We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership. At the same time, we welcome all adidas Golf employees who will be integrated into our adidas Heartbeat Sports Business Unit,” said Kasper Rorsted, CEO of Adidas AG. “Within our long-term strategy ‘Creating the New’, our focus is clearly on our core competencies in footwear and apparel and on our two major brands adidas and Reebok.”
David Shapiro, a managing partner of KPS, said: “TaylorMade is one of the preeminent golf equipment brands worldwide, with leading-edge products that consistently provide consumers a distinct performance advantage over the competition. We look forward to working with Chief Executive Officer David Abeles, his management team and all TaylorMade employees around the world to build on this great platform by driving growth both organically and through strategic acquisitions. The combination of this iconic brand and KPS’ track record of working constructively with talented management teams to make businesses better will provide the ideal foundation for TaylorMade’s future growth.”
The announcement came hot on the heels of Rory McIlroy signing a multi-year deal to play a full bag of TaylorMade clubs including the new TP5x ball. Here’s what the three-time Major winner will have in his bag this weel for The Palayers Championship:
Driver: TaylorMade ’17 M2 (9.5°) with MCG Kuro Kage Silver 70 XTS shaft
Fairways: TaylorMade ’17 M2 Tour (13.5°) with MCG Tensei CK Blue 90TX shaft, TaylorMade ’17 M2 Tour (19°) with Fujikura Composites Pro P95X shaft
Irons: TaylorMade P750 Tour Proto (3-4) with True Temper Project X 7.0 shafts, TaylorMade “Rors Proto” (5-9 ) with True Temper Project X 7.0 shafts
Wedges: TaylorMade Milled Grind (48°, 54°, 60°) with True Temper Project X 6.5 shafts
Ball: TaylorMade TP5x #22