It has been a busy week for TaylorMade. Just a day after announcing they have signed Rory McIlroy to a long-term contract, they broke the news that the company has been sold by adidas AG to KPS Capital Partners, a private equity firm, for $425 million. The sale also includes their Adams and Ashworth brands.
After a year-long search for a buyer, during which they signed Tiger Woods and watched current staffer Dustin Johnson ascend to World No.1, it appears the Carlsbad, California-based company is excited to be moving forward.
Golf Channel’s Rex Hoggard has the full report:
“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,” David Shapiro, a Managing Partner of KPS, said in a release. “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 New York-based KPS manages $5.7 billion in investments in several companies.
JUST-IN: Adidas has sold TaylorMade, Adams Golf & Ashworth brands to NY based firm KPS Capital Partners for $425 million.
— Darren Rovell (@darrenrovell) May 10, 2017
“This is the beginning of an exciting new era for TaylorMade, and our entire management team is excited to partner with KPS in this next phase of our growth and continued development of our brands, business and people,” said David Abeles, TaylorMade’s CEO. “Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
About half of the $425 million deal will be paid in cash with the remainder a combination of secured note and contingent considerations. The transaction is expected to be completed later this year and is subject to closing conditions and approvals.
According to the Financial Times, adidas will take a “high-double-digit to low-triple-digit million euro” charge on the sale.
[h.t Golf Channel, Financial Times]
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