Adams Golf For Sale?

[milehighgolfer]

Finally got a chance to read my current Golf Digest on the plane and the first thing you read is the Editor's Letter on Jamie Sadlowski which also mentions the Adams Fast 12LS as a lead-in to the hot list. A few pages later is a full page add for the a12os irons. And then later they name Yani the World Player of the Year. And I haven't even gotten to the hot list yet. So, in one hour of reading I saw Adams mentioned or advertised three times in a widely read mag.


My point is I think they are getting their product out there. Its just not being recieved like it should. I really like what Wilson Staff is doing in their ads by poking fun at the gearheads who think that Wilson can't make a great club. Adams need to be telling consumers that they should be playing their clubs if they want to play better. But instead the marketing machines and golf media convince the common player that they need to play clubs that hurt their game.

When I needed to buy my son a set this year the only thing I looked at were Adams. I got him a set of a7os's and a Fast 11 3 wood that he should be able to learn and develop with. Now here is the twist, when I was looking for a set for myself this year I completely skipped over Adams. I felt that they were to much of a SGI club and thought I was better than that. That is the perception that they must overcome. A set of a12's would of had an immediate impact on my game.

 

[Ryan Loves Golf]

Looking at their historical market cap, they are right around where they were in early 2008. Many things have changed not just in the golf industry but in our economy, and Adams may be trying to get to the next level where they are a major force in the golf equipment industry. To grow beyond a certain level, it's not just about marketing and products but their financial ability to sustain the size and growth as well as changes to management styles and structural support to do that. All of which needs money. So for that Adams may need new injection of capital. I just hope that whatever they decide to do does not dilute their product research and quality. If so, it will be a good thing for us fellow golfers.

 

[bobgeorge]

Michelle Wie and Natalie Gulbis are as well.
And while you might not see anything like that, there is statistical evidence that supports what they play creates sales and when they are playing well, the "needle" moves in ratings.

I agree Wie, Gulbis & a few others do move the LPGA "needle" to increase ratings, but I will say LPGA ratings are so small to begin with I'm not sure it is doing much. Golf (PGA) is itself a niche sport...so the LPGA is a micro-nitch sport :}

 

[bobgeorge]

Adams do make some nice clubs & I would hate to see them disappear. I had a set of A30Ss myself. For whatever reason though Adams doesn't have the "cool" factor. Like others have said, they need to get some young popular PGA pros to start gaming their gear.

I will add that I think the A12s are some of the nicest looking irons I have ever saw :}

 

[hitmanharleyk]

Adams Golf For Sale

Adams Golf For Sale

"Potential suitors for Plano, Texas-based Adams include Callaway Golf Co., Nike Inc. and Adidas AG, said a person familiar with the matter, who declined to be identified because the discussions are private."

http://www.businessweek.com/news/20...ys-sale-dividend-among-strategic-options.html

 

[Smallville]

Merged with a thread from a few days ago. Don't forget to use the search feature.

 

[blugold]

I very highly doubt that Callaway could afford to buy Adams.

 

[d_in_la]

Interesting three options they put out there. Not sure I like any of them to be honest. Although callaway is looking for a new CEO.

 

[Damaikis]

I'm excited to hear more news on this. The suspense is killing me. I want to know if and to whom Adams is going to move. I honestly don't even have a guess as to who could buy them. Bridgestone? Titleist? Who else?

 

[blugold]

I'm excited to hear more news on this. The suspense is killing me. I want to know if and to whom Adams is going to move. I honestly don't even have a guess as to who could buy them. Bridgestone? Titleist? Who else?

I like the wild speculation on Bridgestone, when it makes no sense. I like how Acushnet is now buying Adams when they themselves were sold last year.

 

[chirpy]

I've never been attracted to Adams - and it's not because they don't make a quality product (maybe they do?) - it's actually more because of the brand. It just doesn't resonate with me and I don't even look at their clubs when I'm in golf shops. I'd buy a Slazenger club before I bought an Adams club. That's the power of marketing (do they even make Slazenger clubs anymore?).

Adams isn't the only one with a weak brand. I'd actually (and probably controversially) put Callaway in that camp as well. Look at their stock price over the last 5 years. They aren't crushing it by any means.

If Adams is looking to sell the company, there are generally two routes: a strategic buyer (another golf or sports company) or a financial buyer (e.g., a private equity firm). If they find a strategic buyer, it will be integrated with another sports brand who will leverage the technology, the brand, or both. Or if it's bought by a PE firm, it will be whipped into shape by reducing costs and improving profits, and then either taken public again or sold to another brand.

Regardless of the scenario I won't be buying any Adams clubs in the near further either way.

 

[chirpy]

I very highly doubt that Callaway could afford to buy Adams.

It looks like Callaway had $64M in cash as of Sept 30, 2011 and Adams currently has a market cap of $59M. I'm pretty sure that Callaway can afford to finance an acquisition or pursue a deal with a mix of cash & stock to buy Adams.

 

[texasgolfer]

Yikes, that's not good. I believe their headquarters are here in Dallas. Hate to hear this, would never have thought this was coming with all the new equipment and players under contract, etc.

They also have the best ladies player in a very long time. Lots of twists to this...


Tappin' from CM's iPad!

Yep, the headquartersare in Plano, and they employee a good amount of people.

 

[pattyblind9golf]

We heard this news from our Rep (who we love! And we hope he keeps his job if/when this happens). Mr blind9 and I were discussing and we can't imagine Callaway would actually buy Adams. Callaway pay that much for Adams patents and technology? No way. I could see another company but not Callaway. I also hope whoever buys Adams keeps the name.

 

[c0ncept]

We heard this news from our Rep (who we love! And we hope he keeps his job if/when this happens). Mr blind9 and I were discussing and we can't imagine Callaway would actually buy Adams. Callaway pay that much for Adams patents and technology? No way. I could see another company but not Callaway. I also hope whoever buys Adams keeps the name.

Ditto...It's too much of a risk for Callaway to invest that much money in something new that isnt themselves in my mind.

 

[JF]

Whoever buys if someone does won't keep the name. Remember Ben Hogan? Callaway discontinued the brand after like 2 years after buying it. It would most likely be a waste of 60 million if another OEM buys.

 

[blugold]

I've never been attracted to Adams - and it's not because they don't make a quality product (maybe they do?) - it's actually more because of the brand. It just doesn't resonate with me and I don't even look at their clubs when I'm in golf shops. I'd buy a Slazenger club before I bought an Adams club. That's the power of marketing (do they even make Slazenger clubs anymore?).

Adams isn't the only one with a weak brand. I'd actually (and probably controversially) put Callaway in that camp as well. Look at their stock price over the last 5 years. They aren't crushing it by any means.

If Adams is looking to sell the company, there are generally two routes: a strategic buyer (another golf or sports company) or a financial buyer (e.g., a private equity firm). If they find a strategic buyer, it will be integrated with another sports brand who will leverage the technology, the brand, or both. Or if it's bought by a PE firm, it will be whipped into shape by reducing costs and improving profits, and then either taken public again or sold to another brand.

Regardless of the scenario I won't be buying any Adams clubs in the near further either way.

I'm sorry but that makes as little sense as not buying a company's golf balls because they don't offer left handed clubs.

 

[hitmanharleyk]

I wouldn't be surprised if in the near future you start seeing the Adams line in Walmart, Kmart and other big box stores. Someone will buy them and go to market with them at a lesser price point kind of like Callaway did with Topflite, remember topflite did make a decent iron at one time.

Basically they will ride the name thru these markets as long as they can while cheapening the quality. Adams just might end up being the new TopFlite or Dunlop.

 

[Hanks]

I wonder if this triggers some clauses in players contracts that will allow them to opt out and sign on with another co?

 

[blugold]

I wonder if this triggers some clauses in players contracts that will allow them to opt out and sign on with another co?

This is part of the reason why I don't think this is a sale to another company. Adams is signing tour players, a good Champions Tour guy and a pretty darn good Euro Tour golfer.

 

[Centre]

damn. just saw this thread. whatever happens I hope the brand and technology stick around. I have a soft spot for adams.

 

[JB]

I'm sorry but that makes as little sense as not buying a company's golf balls because they don't offer left handed clubs.

Huh? His post is full of actual reasoning for his personal opinion. I understand you love the brand and that works for you, just as others dont and you have voiced those thoughts on THP as well.

 

[CharlieMoy]

I thought the post made GREAT sense, but Im not a finance guy. Except for the Callaway part.

Huh? His post is full of actual reasoning for his personal opinion. I understand you love the brand and that works for you, just as others dont and you have voiced those thoughts on THP as well.

 

[blugold]

Huh? His post is full of actual reasoning for his personal opinion. I understand you love the brand and that works for you, just as others dont and you have voiced those thoughts on THP as well.

I took this comment:

Regardless of the scenario I won't be buying any Adams clubs in the near further either way.

As, "I won't be buy Adams clubs since their future is uncertain." I look at it now and realize I am putting words in the poster's mouth.

I love Adams. I have really liked their equipment, it has been good to me. I really like the company. As you know JB from our conversations, they have been good to me.

 

[lrdwilder]

In my opinion I can't see one of the major manufactures kicking in the dough to purchase them. Companies aquire other companies for a few reasons: to incorporate technology that may be better or more advanced then their own, to leverge distribution channels, to gain market share, or to better position their company to shareholders. In my opinion I cant see one of the majors benefiting from any of those necessarily.

That being said perhaps another sporting goods manufacturing or distributor not currently in golf ect.....