Published: Wed, May 17, 2017
Economy | By Melissa Porter

Adidas sells TaylorMade for $425 million

Adidas sells TaylorMade for $425 million

Just a day after Rory McIlroy signed with TaylorMade, the brand, along with Adams and Ashworth, were sold by Adidas to the United States private equity group KPS Partners.

Adidas said it expected the KPS deal to be completed before the end of 2017.

According the ESPN's Darren Rovell, Adidas' golf equipment business has been trending downwards over the last few years. In last year's annual report, Adidas said its golf division was a drag on revenue growth and margins.

New York-based KPS Capital, which manages more than $5.7 billion in investments, counts Chassis Brakes and Heritage Home Group among its other portfolio holdings.

TaylorMade's first-quarter 2017 net sales were $294 million, up 4 per cent on a currency-neutral basis year over year, but Adams and Ashworth were drags on the golf unit.

The announcement comes less than a week after Adidas revealed that it had chose to enter negotiations with interested parties to sell parts of its golf business.

"TaylorMade is a leading global golf brand with an exceptionally strong market position", CEO of Adidas Kasper Rorsted said in a statement.

"This is a great moment to reflect on TaylorMade's journey as a part of the adidas Group", Abeles said.

TaylorMade Golf, which has been up for sale for a year now, has finally found a buyer.

"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, " he added.

Guggenheim Securities LLC acted as exclusive financial advisor to Adidas AG and Sheppard, Mullin, Richter & Hampton LLP served as legal counsel.

The announcement comes just a day after Rory McIlroy confirmed he has signed an estimated $100m long-term equipment deal with TaylorMade.

Headquartered in Carlsbad, California, TaylorMade Golf is a leading manufacturer of high performance golf equipment and golf balls and a major force on the PGA TOUR.

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