Adidas Group, the parent company of TaylorMade-adidas, announced Monday that it has agreed to purchase Adams Golf brand for the approximate price of $70 million.

TaylorMade will acquire all outstanding shares of Adams for 10.80 per share in cash. The agreement is subject to shareholder and government approval, which TaylorMade CEO Mark King expects to be finalized by midyear.

Adams will remain in its current headquarters in Plano, Texas, a decision King said was made because of his company’s struggles with previous company acquisitions.

“We want Adams to keep its identity,” King said in a Monday conference call. “Treating them as an affiliate helps their growth.”

King said that the purchase of Adams Golf emphasizes his company’s commitment to growth, and strengthens TaylorMade’s ability to market to players seeking game improvement clubs, as well as women and seniors, segments that are very strong in the Adams brand. He also said that for a smaller company, Adams had great ideas around intellectual property, which was a very enticing part of the deal.

“One of the things that having multiple brands helps you do is explore different product strategies,” King said. “We didn’t really take an approach on this around synergy. But if there are those we can take naturally, we’ll do it. But we’re not going to put Adams and Yes! products in the TaylorMade tour van … I don’t see the products streamlining.”

King said that TaylorMade’s voice is directed at players with handicaps between 0-4, such as serious amateurs, college players and professionals. There had been conversation at TaylorMade about releasing a senior line, but King said his company made the decision to keep marketing aimed at “the top of the pyramid.”

“We made a foray into women’s club,” King said, “but when you don’t market it heavily and you don’t have your heart in it, that’s what you get. [Adams] is in the sweets spot of the group we don’t market to today.”

One of the first orders of business for TaylorMade will be locating a leader for the Adams brand. Former CEO Chip Brewer left Adams Golf  for Callaway Golf on Feb. 28, leaving Adams Golf founder Barney Adams as the interim CEO. King said TaylorMade is looking for a candidate this is willing to live in Plano and can emotionally connect with the brand. His company is searching inside its brand, as well as doing an executive search.

King said that TaylorMade can help Adams in several areas, such as the international community. According to King, company sales for Adams are only 10 percent overseas, while TaylorMade sells about 60 percent of its products internationally.

“The [international] network already exists,” King said. “They would be funneling product into existing channels.”

According to King, this will most likely be done through a small Adams team working with TaylorMade’s infrastructure outside the U.S., and possibly creating specific product lines for countries such as Asia, which is common for large OEMs such as TaylorMade.

Adams also lacks a golf ball and accessory lines, which King said TaylorMade could bolster for Adams.

Click here for the press release and discussion.

Click here for more discussion on TaylorMade CEO Mark King’s conference call.

This story was first leaked by GolfWRX on March 8.

Click here to see the original leak — a thread in Tour/Pre-Release Equipment.

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31 COMMENTS

  1. I do not think that is going to work. I think that whatever this guy says genuine or not will ultimately lead to the Prior Adams shareholders buying their company back at a premium or TM slowly but surely putting that brand to death. Go find yourself a nice new and shiny set of CMB’s and hold on to them for twenty years. Never hit them hide them in a closet. They will be the only set like it and you will be able to charge what you want for them. Just hope they do not end up as some kmart brand. That would suck. I like the TM MB’s they just released. In fact I like them more than the titleist mb’s. Think they need to get rid of all those other gimmick sticks they are offering every year to the weekend warrior type player that never works at his or her game if they want to only market to the premium player though. Accushnet Titleist has one driver with different weighting options and size I guess, and a set of MB’s, CB’s, and until just a few years ago they now have AP2’s and the cast Iron POS AP1. When a scratch golfer goes to the store to look at new clubs guess what is on their mind? I wonder if there are Titleist mb’s or cb’s in good condition that are priced nicely . They will pick other brands if and only if they catch their eye. Maybe 15% of the time. When all the clubs feel the same or the titleist clubs feel a little better, barely noticeable, guess what is getting bagged that day. Titleist.

  2. Did Mr. Brewer leave Adams on his own and then unexpectedly TMAG buys Adam’s Golf? Adams and TMAG former employees are now at Callaway in Senior Management and previous Callaway Senior Management is let go? Adam’s Golf = $90M in a good year – Callaway Golf = $800M in a bad year. How can a management team from Adam’s (perhaps voted out by share holders)with zero global experience turn around a struggling battleship where 50% of their bus. is outside of the U.S.? What am I missing here?

  3. I left Taylormade for ADAMS Golf Clubs. These are the best clubs I have played. Adams was company with good people and equipment, especially Customer Service Manager Laura Fisher. I had plan to buy a new set of Adams Clubs this year because of the good experience and quality of their products. Now, I am not sure about their ongoing leadership

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