It has been announced by Adidas that they have agreed to sell TaylorMade Golf to a newly formed affiliate of KPS Capital Partners for $425 million. The Adams and Ashworth brands are also included in the sale.
“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,” said David Shapiro, a managing partner of KPS, in a statement.
“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.”
About half of the $425 million will be paid in cash, while the remaining portion will be paid in the form of a secured note and contingent considerations. The final sale is expected to be completed in late 2017. TaylorMade has been available for sale for over a year and the new owners are New York-based KPS Capital Partners. The business manages $5.3 billion in global assets in manufacturing and industrial companies.
“TaylorMade is a leading global golf brand with an exceptionally strong market position,” said Kasper Rorsted, CEO of Adidas AG in a release. “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.”
TaylorMade recently announced the signing of Rory McIlroy to a long-term deal meaning that the company now have the top three players in the world using their equipment. Adidas reported that TaylorMade’s first-quarter 2017 net sales were $294 million, up four percent and with greater profitability.