Most of the TaylorMade Golf news you have heard over the last 48 hours has pertained to the company signing Rory McIlroy to a contract to be a brand ambassador and play the company’s clubs and ball. Today, another major story comes out and that is after a year of being “available”, TaylorMade has been sold by Adidas.
Taking it a step further, Adidas has sold off all of their golf brands in TaylorMade, Adams and Ashworth to a the New York based private equity firm KPS Capital Partners. The cost came in at $425 million, which was substantially less than was being discussed a year ago, but a small amount higher than the numbers being kicked around at the PGA Merchandise Show a few months ago.
Adidas has said over the last year that the brand will continue to produce and distribute both apparel and footwear in the golf space and there has been nothing that has come out to say otherwise since the news has dropped.
THP will continue to monitor the story and bring you more information as it is available.
This is hopefully good news for TM, if the new parent company is willing to help TM get back on their feet and become a profitable company again.
Interesting. As I had mentioned on the forums last year my best friend was on the deal team of a PE firm that was considering acquiring TM. I texted him this morning about this news and he said that KPS valued TM at twice the valuation his firm did, so they didn’t last too long in the negotiation.
Will be cool to see what comes of this sale.
I look forward to seeing KPS strategy for turning TM around and what they’re going to do with all those contracts.