- Joined
- Feb 27, 2019
- Messages
- 20,310
- Reaction score
- 38,372
- Location
- Minneapolis, Minnesota
- Handicap
- 0.1
They have right? Adidas sold them to the company that sold them to this crew.
TaylorMade Golf Sold!
They have right? Adidas sold them to the company that sold them to this crew.
I am not sure this is a good deal for the buyer... Dang thats high..
If this is accurate, it makes one wonder what Adidas missed when selling just a few years ago for ~1/5 th that amount.
Perhaps value is way over inflated due COVID sales?. Which could flatten soon after the summer?. Just guessing
It is not uncommon. Changes in ownership happen a lot, especially if the companies are highly leveraged and capital infusions are required. Some private equity firms are more strategically focused than the flippers. Centroid appears to be one of the former, with a few investments in the golf space. The Centroid CEO used the phrase "long-term opportunities" to describe the acquiaition in a press release. They've only been around since 2015, so there isn't much of a tracvk record to suggest that they are predominantly flippers or buy-and-hold. Keep in mind this is a gross generalization, but my limited experience with private equity ownership of larger (post-startup) companies suggests that Korean PE firms tend to have a longer term focus than their US counterparts.
Did anyone else hear the rumor that Centroid offered $450 million for TM, or $420 million including the Truss putter line?
EDIT - I just saw the $1.7 B number floating out there. That obviously excludes the Truss line.
I was stationed in Korea once, they love golf in that country. So this doesn't really surprise me.
Time will tell if this is good news. The new owners could leave the brand alone, or if we're lucky they'll make a major investment in the brand (R&D, not just marketing). The other option is for the new owners to make dramatic cuts in all areas, attempting to improve short-term profits to make the brand more appear more valuable to potential new owners. In my experience working for a company that had been flipped multiple times in a relatively short period, the latter was the common formula. Thee first PE buyer thought they could leverage the brand names to overcome the cheaper, lower quality products they were putting out. By the time sales were impacted, the company was on to another owner. Upon realizing there were problems that didn't show up in the balance sheet, the new owner had no choice but to continue the cost-cutting measures. And so the cycle continued until the once industry gold standard became a laughing stock.
Given the price paid here, I'm hoping Centroid is in it for the long haul.
Given the price paid here, I'm hoping Centroid is in it for the long haul.
I guess I'm different than most of you. I've always liked Taylor Made clubs, though I've never owned any of their irons. I've got some of their woods and a putter. I like them both. The only problem I've ever had is with their outlandish claims in their advertising, such as, "17 more yards" and their leading the way to overcharge for their clubs, the drivers in particular.
KPS Capital partners bought TM in 2017 for $425M, now sold 4 years later for a 4x multiplier. Damn. I need some of those multipliers in my life.
- Joined
- Dec 26, 2017
- Messages
- 24,259
- Reaction score
- 25,784
- Handicap
- 17.2
Also Adidas didn't own them terribly long either LOL!
It seems like the brand is getting passed around so each time the equity group makes some quick cash or sheds a losing brand. I hope it finds a partner that cares about R&D or this will run out of steam.
I was staring into players bags at the Wells Fargo last weekend and the TM stuff looked awesome. But the days of the battle between they and Cally are over it seems.
I was staring into players bags at the Wells Fargo last weekend and the TM stuff looked awesome. But the days of the battle between they and Cally are over it seems.
Just the nature of the beast. Equity owned, made money and got a good multiple over the purchase price based on good business the last 4 years. PE owners trade companies every 4-6 years, so this is expected especially given today's multiples. Doubtful much changes here given the strengths of the company.
The used car market is pretty hot right now...
Agreed, if you haven't tried SIM 2 drivers/fairways or P series irons you are doing yourself a disservice. I thought I was going to be walking out of the fitter with a set of Titleists or Mizunos but the P770s struck the perfect balance of feel and forgiveness that I didn't get in other sets. I also was not a fan of the '21 Apex line and people love those, so I could just be an outlier.
HITitHIGH
Well-known member
The different kinds and variations of Spyder putters are all over the PGA and Korn ferry tours.
- Joined
- Aug 30, 2018
- Messages
- 26,439
- Reaction score
- 22,253
- Location
- Yukon Territory, Canada
- Handicap
- 9.2
I thought I read speculation that this was in the works some time ago... so not overly surprising. Be interesting to see which strategy they take, and how quickly we start to see changes (if any). Personally, I thought TM was starting to get on track with their products, for the most part. Perhaps the sale price is indicative of that fact.
Also hard to overlook the star power TM carries!
Also hard to overlook the star power TM carries!
sure super popular. The spider is an iconic shape at this point.
Agent Jay
Grandaddy Alumni
If it's true they sold for over a billion dollars, that's a huge return. With that said, could it be that this Korean company has a plan to make TM the biggest golf OWM in the Asia market place. If so, maybe they got a good deal?
The 2020 revenue estimate for TaylorMade is $875M. $1.7B is a 2x multiple on sales. It would be interesting to see their balance sheet as this would provide a better indication of the companies value.
I work for a company that went through two rounds of PE before landing in a good spot. PE firms are ruthless (in my opinion) but they're willing to make tough decisions.
I work for a company that went through two rounds of PE before landing in a good spot. PE firms are ruthless (in my opinion) but they're willing to make tough decisions.
Maybe they will show up to the PGA equipment show now.
- Thread starter
- Admin
- #48
I wouldn’t count on it, unless leadership changes, but ya never know
two types of PE - Bleed em' dry and strap em with debt or build the business and identify opportunities.
I read that Fila purchased Acushnet in 2011 for $1.225 billion, which doesn’t make a price approaching $2 billion seem outrageous. I also read that Morgan Stanley was running the sale and had placed a $2 billion valuation on TaylorMade. I don’t know much of the history, but it sure makes me wonder why Adidas sold TaylorMade four years ago for $425 million.