Advertisement
Advertisement

Adidas sells Carlsbad’s TaylorMade Golf to private equity firm

Share

Carlsbad’s TaylorMade Golf Co. has been spun out of German shoe giant Adidas and sold to a New York private equity firm for $425 million.

KPS Capital Partners said in a statement Wednesday that it plans to work with TaylorMade’s management team to grow through increased sales of its own golf gear, as well as possible acquisitions.

Adidas put TaylorMade on the auction block about a year ago to focus on its faster-growing athletic footwear and apparel businesses. The buyout includes the TaylorMade, Ashworth and Adams golf brands.

Advertisement

The deal comes as the golf industry continues to suffer from stagnant participation in the U.S. and elsewhere, which contributed to the 2016 bankruptcy of golf retailer Golfsmith. Shoe giant Nike also exited the golf equipment arm last year.

Adidas got into golf in 1997, when it paid $1.3 billion to buy French ski company Salomon – the owner of TaylorMade at the time. It added Carlsbad-based golf shirt pioneer Ashworth in 2008. Texas club maker Adams Golf was acquired in 2012.

Founded in 1979, TaylorMade makes golf clubs, golf balls and accessories. It sponsors six of the top 12 ranked players in professional golf, including Rory McIlroy, Sergio Garcia, Jason Day and Dustin Johnson.

In the first quarter, Adidas reported TaylorMade sales of $319 million, up 4 percent from the same quarter last year.

KPS Capital has $5.3 billion in assets under management. In a statement, Managing Partner David Shapiro said KPS called TaylorMade one of the top brands in golf.

“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,” said Shapiro.

KPS Capital’s current portfolio of companies includes Chassis Brakes; thread maker American & Efird; and Heritage Home Group, which owns Thomasville, Broyhill, Drexel Heritage and other furniture brands

TaylorMade Chief Executive David Abeles called the deal a new era for the company.

“Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum,” Abeles said in a statement.

About half of the purchase price will be paid in cash, with the remainder in a combination of secured debt and other means, according to KPS Capital. The deal is expected to be completed later this year and comes a day after the company signed Rory McIlory to an endorsement deal.

Business

mike.freeman@sduniontribune.com;

Twitter:@TechDiego

760-529-4973