Adidas AG has agreed to sell golf brands TaylorMade, Adams Golf and Ashworth to private-equity firm KPS Capital Partners for $425 million, after a year on the market.
A few months ago TaylorMade added Tiger Woods to the roster and I noted that maybe, just maybe, this would be enough to push the brand towards being acquired.
I went as far as to state that maybe Nike would possibly acquire TaylorMade, which honestly didn’t make sense, but did sound good considering Nike could keep the TaylorMade board in tact and allow it to operate as a subsidiary. That didn’t happen. TaylorMade was sold to a company that formed a new group to make the purchase, KPS Capital. KPS typically deals with “manufacturers and industrial firms”.
Does the acquisition matter? Probably not. I don’t know one person who actually golfs. As a matter of fact I don’t know any students that I’ve taught in college or high school that golf… actually I take that back. I met a young man who is a golf pro a few days ago. I asked him if he considered pursuing a career and he replied, “not really.” That basically tells the story. A kid who works as a golf trainer and is a senior in high school isn’t remotely interested in pursuing the sport. KPS got the brand fairly cheap and adidas took a loss on TaylorMade. Take a moment to use the source link to read more.