Lamkin Grips

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The adidas Group and Adams Golf, Inc. (NASDAQ: ADGF) today announced that the TaylorMade-adidas Golf business segment has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $ 70 million (approximately € 53 million), which represents a premium of approximately 71% to the share price prior to Adams Golf’s announcement that it was examining strategic alternatives on January 4, 2012.

Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforces its position as the world’s number one player in golf. The addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers.

“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group CEO Herbert Hainer. “The proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams’ focus on game-improvement as well as senior and women golfers with TaylorMade-adidas Golf’s focus on the younger and the low-to-mid handicap golfer.”

“We are very excited to team up with Adams Golf, whose management team we have respected for many years,” commented Mark King, President and CEO of TaylorMade-adidas Golf. “Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal.”

“This merger provides strong opportunities for our employees, suppliers and partners,” said Barney Adams, Interim CEO of Adams Golf. “The Adams Golf brand will fit nicely into TaylorMade-adidas Golf’s stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources. We are also excited that TaylorMade-adidas Golf has decided to maintain Adams Golf’s headquarters in Plano, Texas.”

The Board of Directors of Adams Golf has unanimously approved the transaction. Certain insiders, who include John M. Gregory, Joseph R. Gregory, SJ Strategic Investments LLC, B.H. (Barney) Adams, Russell L. Fleischer, Mark R. Mulvoy and Robert D. Rogers, collectively own approximately 35% of Adams Golf’s outstanding shares and have agreed to vote their shares in favor of the transaction. The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.

In connection with the transaction, Barclays is acting as financial advisor to the adidas Group, and Sheppard Mullin Richter & Hampton LLP is serving as legal counsel. Morgan Stanley is acting as financial advisor to Adams Golf and Haynes & Boone, LLP is serving as legal counsel.

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  1. Freddie kong says:

    I guess it good to see closure here. I do struggle to see how Adams will fit into the Taylormade line. I wonder if the Adams name will continue on.

  2. Cookie says:

    Sad to see this. I think competition is good between OEM’s but this seems to be what has to be done to stay alive these days. Will be interesting to see how this impacts the end consumer via offerings, etc,

  3. ddxu says:

    I can’t wait to see Bernhard Langer doing RBZ commercials.

  4. TC says:

    Sweet! I think it’s best for all parties involved. It will be fun to see how Tmag makes Adams hip and cool.

  5. pkielwa says:

    Well, looks like we’ll have multi-adjustable, white, AERODYNAMIC drivers now!

  6. royalwulff says:

    It is going to be fun to watch how this plays out for both lines and if the become blended.

  7. Buckjob says:

    wow this should be interesting to see how it plays out. i honestly dunno if its a good idea or not. But hopefully it makes both companies equipment better than before.

  8. taccwil says:

    I think it will work. Taylormade is smart enough to know that Adams has a loyal following and I don’t think they will do too much to upset that. With that said, the aquisition itself could upset a few of those followers.

  9. Mastapp says:

    This is going to be awful. I was a Hogan guy until Callaway took that brand and killed it off. Now I’m almost exclusively Adams and I am going to be extrememly bitter if they do the same to the Adams brand. On a side note, I wonder what Kenny Perry thinks about this…

  10. Smallville says:

    I really like my Adams clubs. Not sure how great a thig this is just yet. We’ll see what happens.

  11. 9-Iron Man says:

    Wow, big news here. Time will tell how this works down the road, but it seems like a good move for both. I am very curious to see if Adams remains a stand-alone brand or if everything gets merged into TaylorMade.

  12. Coolbreeze says:

    Kenny Perry didn’t leave for 20 more yards just to be brought back in! I do think this is a good move for Taylormade and it will be interesting to see how they do things moving forward.

  13. tider992010 says:

    I wonder if this has anything to do with the slot technology in both companies. Adams had the slot in there woods first then Taylormade RBZ. I don’t thing techology is worth that but if both companies are moving in the same direction, would make since going forward. Also interested to see what new technogies would come out of the merger. ADAMS needs the marketing that Taylormade has.

  14. Griff says:

    I’m not liking this.

  15. Danilo says:

    Don’t know what to think of this at this point…
    Only time will tell.

  16. AllFours says:

    This sucks. Less competition is what I see this as being about for TM. I hope I’m wrong and Adams is left alone by TM to continue under their own name.

  17. Dr. Teeth says:

    I think this has the potential to be really good for all parties.

  18. JackH says:

    that’s kind of sad how Kenny Perry just switched from TM to Adams.. now he’s right back in the same spot… he’s probably thinking “FML!!!!!!”

  19. SW says:

    Well it’s about time this was announced. It’s a good move for both parties and certainly will strengthen each brand.

  20. Snyperx says:

    So does this mean my two sets of Adams Hybrids are instantly Taylormades?? 🙂 To be serious I am not sure if this is good or bad…..

  21. Eric says:

    YAAAAAAAAY GO ADIDAS

  22. DawgDaddy says:

    Just saw the announcement when checking my email. I am glad that Adams was able to make the deal and look forward to seeing how this “marriage” works out.

  23. Beke Jr. says:

    Sad Sad day. I hope they keep the adams name around as a sister company.

    TM already “borrowed” Adam’s slot technology, hopefully they will give some wedge technology to Adams in this merger.

  24. Mike says:

    I absolutely DO NOT LIKE THIS AT ALL!

  25. AAAA4YA says:

    I absolutely love it. We all know that the TMaG is the innovator in this industry and by joining forces they can only grow stronger. Callaway, Titlist, Ping, etc have nothing going on but copying.

  26. Adam says:

    Horrible. Taylor Made has become a joke one step ahead of The Hammer (POW!). Now they will ruin Adams and Yes!

  27. bear4ever says:

    A smart move for TM. The combo sets will fill a gap in the TM selections.
    Also, I agree with ddxu. Langer doing a RBZ commercial….worse than the Sean O’Hair spot!

  28. Big Time says:

    Looks like Kenny Perry will now be able to continue his affiliation/sponsorship with TM Golf!

  29. biggsy says:

    It will be interesting to see how this works out for TM. I think it’s a brilliant move.

  30. Bert says:

    I have always liked my adams irons. I hope this is a good thing-I’m just not sure.

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