Adidas says golf unit Taylormade to buyout group KPS

 golfjoe ·  
golfjoegolfjoe Members  147WRX Points: 50Posts: 147 Fairways
Joined:  in Tour Talk #1
Posted:
«1
2

Comments

  • swoosh21swoosh21 Members  1034WRX Points: 153Posts: 1,034 Platinum Tees
    Joined:  #2


    German sportswear maker Adidas is selling its golf equipment and clothing brands TaylorMade, Adams Golf and Ashworth to private equity firm KPS Capital Partners, taking a hit to its earnings.


    Adidas will get $425 million, around half of which will be paid in cash and the rest in secured notes and contingent considerations, the company said in a statement on Wednesday.


    It had put the loss-making business up for sale last year to focus on shoes and clothing. After peaking around 2000, when Tiger Woods was in his prime, the number of people playing golf in the United States, which accounts for half the global golf market, has fallen sharply.




    Adidas also said that following the sale it will book a charge in the high double-digit to low triple-digit millions of euros range.
    Posted:
    TM M5 9.0 Driver
    TM M5 3W
    TM 770 6-PW
    TM 790 3-5
    Titleist SM7 50, 54, 60
    Scotty Cameron Newport First 500
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • illum1na71illum1na71 Members  324WRX Points: 103Posts: 324 Greens
    Joined:  #3
    Posted:
  • JonnyKrasnodarJonnyKrasnodar Members  1907WRX Points: 182Posts: 1,907 Platinum Tees
    Joined:  #4
    Yeah there's some discussion in the other thread.



    It looks as though this has indeed been in the works for months.
    Posted:
  • Kenny Lee PuckettKenny Lee Puckett Members  3463WRX Points: 52Posts: 3,463 Titanium Tees
    Joined:  #5
    well lets hope KPS Capital can come up with all of Rory's money.
    Posted:
    [font=tahoma,geneva,sans-serif]PING G LST: Ping Tour 80
    PING Anser 4wd: Accra S380 RT
    PXG 0317: Fujikura Rombax 8D07HB
    PING i500 4 iron: D.G. 120
    PING S55 5-PW: D.G. Tour Issue
    PING Glide 2.0 50/54/58: D.G. Tour Issue
    PING Darby F Ti Pixel: SS 2.0 Mid
    PING: Sensor Glove, Ping 703 Cord grips
    PING: Hoofer Bag
    TaylorMade: TP5 & TP5x ball

    WITB photos: [/font]http://www.golfwrx.c...uckett-witb-19/
  • 2putttom2putttom # 1 Oregon Duck fan Members  10322WRX Points: 569Handicap: 12Posts: 10,322 Titanium Tees
    Joined:  #6


    well lets hope KPS Capital can come up with all of Rory's money.
    maybe performance pay contract?
    Posted:
    Tour Exotics E 10 15*
    Srixon 785's w/G P stnd. cord
    Mizuno T 7 52 T 20 56 &60
    Bobby Grace SNYPER  46"
    Oregon Ducks Bag
    Eureka Ca. 
  • swoosh21swoosh21 Members  1034WRX Points: 153Posts: 1,034 Platinum Tees
    Joined:  #7
    I'm sure all that has been negotiated.
    Posted:
    TM M5 9.0 Driver
    TM M5 3W
    TM 770 6-PW
    TM 790 3-5
    Titleist SM7 50, 54, 60
    Scotty Cameron Newport First 500
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • bnb9433bnb9433 Members  256WRX Points: 64Posts: 256 Greens
    Joined:  #8
    explains the Rory signing
    Posted:
    Cobra F9 w/ Atmos Tour Spec Blue 6s
    Epic Flash 3w w/ HZRDUS Smoke 6.0 70g
    Callaway Apex '19 20* 3H
    Ping i200 4-PW w/ PX 6.0
    Titleist SM6 50, 54, 58
    Odyssey O works 7s
    ProV1
  • greggvmgreggvm Members  67WRX Points: 0Posts: 67
    Joined:  edited May 10, 2017 #9
    Another website just announced the sale. Here's an excerpt:



    [background=rgba(43, 178, 76, 0.14902)]We've just received word that TaylorMade CEO, David Abeles, has sent an email to employees notifying them that adidas has sold the company to KPS-Financial, a New York-based private equity firm.|[/background]







    The Adams and Ashworth brands are also included in the sale.

    According to the email, KPS "is committed to the continued growth and development of our brands, business and people."

    Abeles adds:


    Over the course of the past 12 months, I have personally come to know the leadership team at KPS and, like TaylorMade, they have talented people with strong professional values who share our vision. I couldn't be more thrilled that they have chosen to acquire our company.

    Today's announcment, that tTaylorMade will be joining KPS, marks the next step in our journey together, a stepping stone toward realizing our mission and vision, and for all of us, an exciting new chapter.




    The letter also includes a message of thanks to adidas for its 19 years of support:




    This is a great moment to reflect on TaylorMade's journey as part of the adidas Group. Being a part of adidas, since 1998, has been an incredible ride. Over the past 19 years TaylorMade has grown to become the innovation and performance leader in the Golf Industry, and has strengthened its market share position in all categories during this period.

    Our remarkable growth was made more possible because of adidas' belief and support. I would like to thank Kasper and the wider team in Germany for everything they have done to help us be successful. We look forward to working closely with KPS and the adidas Group over the next several months to insure [sic] a smooth transition for TaylorMade. We are targeting Fall 2017 for an official close date and change of ownership.

    As one chapter closes, another one begins. So this is also the beginning of a new and exciting phase in our company's history.




    Link is here: [url="https://www.****.com/adidas-sells-taylormade-to-private-equity-firm/"]https://www.mygolfsp...te-equity-firm/[/url]



    Haven't seen anything on Taylor Made, Adidas or KPS sites yet but this seems legit. Update: Golfweek and Shakelford are both reporting the sale as well.



    [color=rgba(0, 0, 0, 0)]​Update: [/color]
    Posted:
  • illum1na71illum1na71 Members  324WRX Points: 103Posts: 324 Greens
    Joined:  #10
    425M for a company that was valued over 1.5B less that 4 years ago... Amazing.
    Posted:
  • sbjinxsbjinx Orange CountyMembers  2538WRX Points: 239Posts: 2,538 Titanium Tees
    Joined:  #11
    So I guess it was KPS who wanted Rory and not Addias
    Posted:

    Callaway Epic Flash TD - Graphite Design VR
    Callaway Epic Flash 15*
    SIM - 19*
    Bridgestone J15cb - 4-PW
    Titleist SM7 - 52* & 58*
    Spider X

  • uflorida1uflorida1 Members  745WRX Points: 75Posts: 745 Golden Tee
    Joined:  #12
    Wow will they make Rory switch shafts to KPS? /sarcasm
    Posted:
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • GoIrish17GoIrish17 Cuyahoga Falls, Ohio Members  6262WRX Points: 1,044Handicap: 8Posts: 6,262 Titanium Tees
    Joined:  edited May 10, 2017 #13
    uflorida1 wrote:


    Wow will they make Rory switch shafts to KPS? /sarcasm




    That joke was so funny you had to share it in two threads?



    http://www.golfwrx.com/forums/topic/1484232-rory-mcilroy-signed-with-taylormade-merged/page__st__390#entry15495504
    Posted:

    Driver: TaylorMade SIM Max 9° | Ventus Black Velocore 7
    3wd: Titleist TS2 15° (C1) | Diamana D+ LTD 70
    Hybrid: Callaway Apex 18° | AD-DI 95
    Irons: Callaway X Forged UT 21° | AD-DI 105/ MP 20 MMC 5-PW | PX Catalyst 100
    Wedges: Vokey SM8 raw 50°F (Handground S), 54°S, 58°M (Handground A) | DG Black Onyx
    Putters: Byron Morgan DH 89

  • GoIrish17GoIrish17 Cuyahoga Falls, Ohio Members  6262WRX Points: 1,044Handicap: 8Posts: 6,262 Titanium Tees
    Joined:  #14
    This is pretty big news in the world of golf. Much bigger news in regards to the larger picture, but the Rory thread is still getting more action than this one.



    Also- the title of this thread is very confusing. I read it as the exact opposite of the intended meaning.
    Posted:

    Driver: TaylorMade SIM Max 9° | Ventus Black Velocore 7
    3wd: Titleist TS2 15° (C1) | Diamana D+ LTD 70
    Hybrid: Callaway Apex 18° | AD-DI 95
    Irons: Callaway X Forged UT 21° | AD-DI 105/ MP 20 MMC 5-PW | PX Catalyst 100
    Wedges: Vokey SM8 raw 50°F (Handground S), 54°S, 58°M (Handground A) | DG Black Onyx
    Putters: Byron Morgan DH 89

  • JoeyD12JoeyD12 Members  319WRX Points: 0Posts: 319
    Joined:  #15


    well lets hope KPS Capital can come up with all of Rory's money.




    They have had a plan in place for months regarding Rory's money, I can promise you that.
    Posted:
  • Kingcat990Kingcat990 European Tailored Golf Socks Members  4021WRX Points: 314Posts: 4,021 Titanium Tees
    Joined:  #16
    GoIrish17 wrote:

    uflorida1 wrote:


    Wow will they make Rory switch shafts to KPS? /sarcasm




    That joke was so funny you had to share it in two threads?



    http://www.golfwrx.com/forums/topic/1484232-rory-mcilroy-signed-with-taylormade-merged/page__st__390#entry15495504




    Had to slap my knee and laugh out loud twice. Been a good day.
    Posted:
    Wyoming Cowboys
  • RedbirdRedbird Members  2271WRX Points: 135Posts: 2,271 Platinum Tees
    Joined:  #17
    So is Adidas out of the golf clothing and shoe making business as well?
    Posted:
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • Holy MosesHoly Moses Members  11018WRX Points: 806Posts: 11,018 Titanium Tees
    Joined:  edited May 10, 2017 #18
    This could make the equity group a ton of money if Day can stay healthy, Tiger's fusion works, and Rory finds a hot putter. $425 million is a great number for somebody.


    Redbird wrote:


    So is Adidas out of the golf clothing and shoe making business as well?




    No. They kept them bc clothing and shoes make money outside of Ashworth.
    Posted:
    Ping G30 LS Tec 10* (DI-6X)
    Ping G30 3W 14.5* (DI-7X)
    Ping G400 Crossover 19* (Tensei CK Pro Blue 80 S)
    Ping i20 4-UW (PX 6.0)
    Ping Glide 2.0 56*SS, 60*ES (PX 6.0)
    Ping Vault Arna
  • tbowles411tbowles411 ClubWRX  25619WRX Points: 746Handicap: GolfPosts: 25,619 Titanium Tees
    Joined:  edited May 10, 2017 #19
    Holy Moses wrote:


    This could make the equity group a ton of money if Day can stay healthy, Tiger's fusion works, and Rory finds a hot putter. $425 million is a great number for somebody.




    All this is very true. They're "hedging" their bets! (Sorry it was there! I had to use it!) But if all that takes place, they're going to make their money back quickly and then sell them for top dollar to a larger company.
    Posted:
    G410 9 Degree - Accra FX 2.0
    G410 3, 5 & 9 Woods - Accra FX 2.0
    G410 4-5 Hybrids - Accra 80i
    G410 6-UW - Accra 80i
    Glide 3.0 54WS, 58WS Accra 80i
    PING Bruzer
    PING Vault 2.0 Craz-E **Backup**





  • calogecaloge Members  465WRX Points: 87Posts: 465 Greens
    Joined:  edited May 10, 2017 #20
    GoIrish17 wrote:

    uflorida1 wrote:


    Wow will they make Rory switch shafts to KPS? /sarcasm




    That joke was so funny you had to share it in two threads?



    http://www.golfwrx.c...0#entry15495504




    2hl0hie2vy26.gif
    Posted:
  • vwgolfervwgolfer Members  1970WRX Points: 110Posts: 1,970 Platinum Tees
    Joined:  #21
    This is great news for Callaway. The death of Taylor Made is just beginning. These kind of deals always ruins products especially something like golf. Wait for cheaper and poor quality clubs. It wont work out.
    Posted:
    F8 attas cool
    F8 3w. attas 3
    F6 hybrid. vts silver
    Z565. recoil 95
    Pur wedges
    Piretti Matera
  • MB DirtyyMB Dirtyy Members  646WRX Points: 78Posts: 646 Golden Tee
    Joined:  #22
    Sold for 425 million. Seems really low. Ouch.
    Posted:
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • the bishopthe bishop Members  3872WRX Points: 876Posts: 3,872 Titanium Tees
    Joined:  #23
    To me it gives some credibility to TM's denial that Rory's deal was for $100M. Not saying he's not getting a boatload of $$ but maybe not $100M.
    Posted:
    W/S D7 10.5*
    W/S C300 15*
    W/S C300 20*/23*
    W/S FG62 5-P
    W/S PMP 52/56/60
    TM Ardmore 3
  • benclabbenclab golfn702 Members  1644WRX Points: 121Posts: 1,644 Platinum Tees
    Joined:  #24
    vwgolfer wrote:


    This is great news for Callaway. The death of Taylor Made is just beginning. These kind of deals always ruins products especially something like golf. Wait for cheaper and poor quality clubs. It wont work out.


    KPS is known for doing the opposite. They'll manage their staff and capital more in depthly than adidas did and they'll force them to make quality or nothing products. Manufacturing and profits is their strong suit. This deal puts them over 6 billion in assets.
    Posted:
    Ping G400 LST 8.5° w/ Kuro Kage 60x
    Titleist 915 Fd 15° and 18° w/ Diamana WB 80x
    Callaway X ut 21° w/ modus 120x
    TaylorMade '14 MB 5 thru PW w/ PX 6.5
    Taylormade Tour Preferred 50° and 54° w/ PX 6.5
    Taylormade Tour Preferred atv 58° w/ DG
    Odyssey O works 1ws; 33 inches
    Taylormade TP5X
  • illum1na71illum1na71 Members  324WRX Points: 103Posts: 324 Greens
    Joined:  #25
    Where this is going to be interesting, logistically, is how TM once leveraged the Adidas operations group in China. Now, they'll have to find their own group of quality and logistics group. When under Adidas, they could leverage Adidas' economies of scale to get better shipping costs. That's piece will be interesting. I understand that KPS has holdings and companies in China, but golf is a slightly different animal.
    Posted:
  • halfsumohalfsumo Members  795WRX Points: 176Posts: 795 Golden Tee
    Joined:  #26
    5 layer carbon fiber crowns next year!
    Posted:
    Mavrik 8* Tensei Pro White 60tx
    TS3 15*  Tensei Pro White 70tx
    TS2 hybrid 19* Tensei Pro White 90tx
    Mizuno MP20 combo 4-PW LZ 6.5
    PING Glide 3.0 50, 56ss
    Vokey SM7 60 S grind
    Newport 2 
  • new2g0lfnew2g0lf Members  3450WRX Points: 363Posts: 3,450 Titanium Tees
    Joined:  #27
    $425M is low for a business that was worth 4x that 3-4 years ago. Leads one to wonder, if the price reflective of how desperate Adidas was to dump them, how poorly TM has done financially last 3-4 years or is it a larger indication of an overall decline in the hard goods business.
    Posted:
    Driver - Home Callaway Epic Flash   Away Callaway Rogue Sub Zero 
    Woods - XXIO 10 3W
    Hybrids - XXIO 10 3H, 4H, 5H
    Irons - Home - PXG Gen 2 0311P 5-SW   Away - Callaway Apex CF-19 5-SW
    Wedge - PXG 58* 
    Putter - Seemore Nashville mFGP2 SS Mallet Black
    Ball - KSig, TM TP5X, Snell MTB
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • halfsumohalfsumo Members  795WRX Points: 176Posts: 795 Golden Tee
    Joined:  #28
    Dear KPS Partners,



    First order of business: Please tell the custom department to stop automatically tipping every shaft 1" for no reason.
    Posted:
    Mavrik 8* Tensei Pro White 60tx
    TS3 15*  Tensei Pro White 70tx
    TS2 hybrid 19* Tensei Pro White 90tx
    Mizuno MP20 combo 4-PW LZ 6.5
    PING Glide 3.0 50, 56ss
    Vokey SM7 60 S grind
    Newport 2 
  • jackzhangjackzhang Members  23WRX Points: 20Handicap: 15Posts: 23 Bunkers
    Joined:  #29
    what a bargain!
    Posted:
  • Bob57Bob57 Members  2933WRX Points: 0Posts: 2,933
    Joined:  edited May 10, 2017 #30
    $425 million and only half in cash, gosh that sounds like less than the rumored dollars they are paying the highly ranked staff.. Compared to Achusnet I am surprised they just didn't close shop like Nike did..Will be interesting for all their leadership and product development as KPS structurally adjusts the company for profitability. In five years they are down to $500 million sales from $1.5 billion yikes. Said over the last few years they have been losing 75-100 million a year... wonder where they get the money to pay the staff from. Have really gone downhill after Sean Toulon left..
    Posted:
    Post edited by Unknown User on
  • GolfWRXGolfWRX Warning Points: 0  11 Members Posts: 11 #ad
    Joined:  ...

    Advertisement
  • BottleCapBottleCap Members  1494WRX Points: 251Posts: 1,494 Platinum Tees
    Joined:  #31
    Bob57 wrote:


    $425 million and only half in cash, gosh that sounds like less than the rumored dollars they are paying the highly ranked staff.. Compared to Achusnet I am surprised they just didn't close shop like Nike did..Will be interesting for all their leadership and product development as KPS structurally adjusts the company for profitability. In five years they are down to $500 million sales from $1.5 billion yikes.




    In a couple of days when Acushnet announces earning we will see how they compare to others.
    Posted:
    Taylormade M5 Mitsubishi Kuro Kage XD 70 S
    Titleist 917 F3 GD TourAD IZ 8S
    Mizuno MP 69 3-PW DG S400
    Vokey SM7 54S and 60M
    Cameron Newport 2 CT
    Bridgestone Tour B XS
2

Leave a Comment

Rich Text Editor. To edit a paragraph's style, hit tab to get to the paragraph menu. From there you will be able to pick one style. Nothing defaults to paragraph. An inline formatting menu will show up when you select text. Hit tab to get into that menu. Some elements, such as rich link embeds, images, loading indicators, and error messages may get inserted into the editor. You may navigate to these using the arrow keys inside of the editor and delete them with the delete or backspace key.