It’s been a question hanging over the golf industry for some time. After adidas made it known last year that they were looking to off-load TaylorMade Golf, the mystery remained about just who would be the contenders for such a transaction.
Now we know.
A day after signing an endorsement deal with Rory McIlroy, and putting the top 3 golfers in the world in their camp, a deal has been struck for the acquisition of TaylorMade Golf Company.
Making the announcement of an agreement was KPS Capital Partners, LP, of New York.
The firm announced that they had reached terms with adidas AG to acquire the TaylorMade Golf Company, including the TaylorMade, Adams and Ashworth brands, for a total of $425 million. Half of which will consist of cash while the rest will come in the form of “secured notes and contingent considerations.”
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.”
David Abeles, Chief Executive Officer of TaylorMade, said, “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. The TaylorMade team is deeply committed to making the most technically advanced performance-driven golf equipment, and this mission will never change. Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
A release from KPS says the transaction is expected to be completed by late this year subject to normal closing conditions and approvals.
Completion of the transaction is expected later in 2017 and is subject to customary closing conditions and approvals.