TaylorMade Golf has shored up their supply chain by acquiring the Korean-based Nassau Golf Company limited, addressing a continuing issue throughout the entire golf industry,
As a result of the acquisition, for an undisclosed amount, TM Golf Ball Korea has been created. It joins TM Golf Ball South Carolina (US) and TM Golf Ball Taiwan (TaylorMade-Foremost Golf Co.) in the production system for the company’s golf ball products. Those lines have had an increasing demand, according to the company. They claim a 176% growth rate over the last five years in the US, UK, and Japanese markets, referencing Golf Datatech figures.
“This acquisition further supports TM’s strategic plan to create vertical integration in the company’s golf ball supply chain. TM Golf Ball Korea now joins TM Golf Ball Taiwan and TM Golf Ball South Carolina to service the global demand requirements for our rapidly growing golf ball business,” said David Abeles, CEO, TaylorMade Golf
The choice to vertically integrate through acquiring Nassau is a logical one for the brand, the Korean company has been a supplier to TaylorMade for more than 15 years.
There is no word how this will immediately affect other manufacturers who have used Nassau as a supply source and may have contracts in place. Expectedly they will likely now have to look for another source to manufacture their products.