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TaylorMade buys Adams Golf

by   |   March 19, 2012
TaylorMade Entrance

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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30 Comments

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  2. Jonathan Paine

    February 12, 2013 at 1:03 am

    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. Harold Lee Hairston

    December 16, 2012 at 8:59 am

    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

  4. Pingback: GolfWRX.com – TaylorMade buys Adams Golf — CEO Mark King … | Golf Products Reviews

  5. Sue Cline

    April 7, 2012 at 8:56 pm

    Dear Mr. King, Saw undercover boss that you were in recently and was really moved by all you did for the workers. It’s great to be appreciated. You really showed that you care about people. I had to smile when you went to Liberty , Township( Girard Ohio, ) and I am From Youngstown, Ohio. I live now in Tenn. Thanks Sue

  6. john

    March 31, 2012 at 1:56 pm

    BVS you must be a TM rep or a knucklehead.

  7. john

    March 31, 2012 at 1:54 pm

    Sad day. TM makes garbage and sells it with tons of hype. I’ve never hit a TM club that I liked but I’ve been playing Adams for years. I’m sure clubs like my forged A4s and the CB line are done because they are so much better than anything TM makes. Thanks for everything Barney, you’ll be sorely missed. P.S. Rocketballz is the dumbest name in history.

  8. jeff

    March 26, 2012 at 8:03 pm

    mb line I mean

  9. jeff

    March 26, 2012 at 7:55 pm

    I really hope the mg line stays. Such great looking and feeling irons.

  10. James

    March 23, 2012 at 2:46 pm

    I play Adams because of their design and innovation, TM will not be seen in my bag, as Ben said, the RBZ technology was copied from Adams, they made the worst irons the past 10 years and changed the design every 6 months, they are a marketing machine and every golfing fool who fall for their marketing will buy a new driver every 6 month. I PLAYED FOUNDERS CLUB CB Tour designed by Barney Adams for 8 years as a 0 handicap. No other set of irons could improve on them. Then I found the CB1′s and the New MB2′s. I will stick with them for the next 10 yrs. while all the TM fanatics spend thousends of $$$ buying white paint as the latest technology. Long live Adams, TM targeting 0 to 4 handicap golfers, my word with the crap shafts they put in their clubs, and RBZ oversize irons!!! R 11 irons for handicap 0 to 4 golfers, Same as Callaway insisting that their RAZR Tour irons is for 0 handicap golfers.

  11. Ben

    March 23, 2012 at 10:25 am

    Taylormade needed the patent for the slot on the top of the hybrid and fairway woods. They paid $70million for a patent.

    • Parks

      January 21, 2013 at 2:30 am

      Best comment so far. I’m a mechanical engineer and design all kinds of consumer products, probably a few things in all of your homes today. When I heard of this sale this is the first thing I thought of. The slight slot in the bottom of the RBZ’s was getting pretty close to what Adams was doing so they scooped it up. It’s just business as usual.

  12. Pingback: A Few Thoughts On The Adams Golf Sale

  13. Sean patterson

    March 21, 2012 at 8:53 pm

    Here’s the problem…
    Penta golf ball will never be the pro v….their white putters will never be a Scotty….and their wedges will never be vokeys…
    Thanks for playing the number 1 ball in golf.

  14. DS

    March 21, 2012 at 10:57 am

    Not a fan of TaylorMade and not a fan of this move. Yes! putters are some of the best out there, but now that TaylorMade has their hands on them, they’ll either squash them completely or turn them into garbage just like the other putters in the TM line. I think it’s funny that TM supposedly markets their products to the 0-4 handicap player. Riiiiiiight! That’s why they release either different models of every club each year and continue to lengthen the shafts and strengthen lofts… because the low handicap player doesn’t hit far enough, right? No, they market to the hacker who thinks that every new driver and iron is going to make them a tour pro instantly. That’s who they market too and that’s why TM is and always will be crap.

  15. nick

    March 20, 2012 at 4:21 pm

    I hate TM with a passion.

    Long live the original Adams Golf.

  16. JohnD.

    March 20, 2012 at 3:19 pm

    Yep, this is sad news. I feel like I found out a family member has a few days left to live. I play Hogan Apex irons and IMO, some of the best playing and most beautiful clubs ever. Callaway comes along and BAM…Hogan has left the building. When the commerical came out with Kenny Perry hitting the Adams 3 wood and then saying, “This thing is a rocket!!!” I looked at my wife and said, ‘TM will not like that at all since they were launching the Rocketballz line’. I guess they got really pissed! Later Barney

  17. BVS

    March 20, 2012 at 7:49 am

    People get over yourself this is a great thing for adams . A great company with a great track record is going to help Adams . Better TaylorMade -Adidas then Underarmor or Oakely buying them who knows nothing about golf clubs . Like it or not TaylorMade Golf is the best.Do you have rocket ballz I do haha.

  18. Jonsson

    March 20, 2012 at 1:27 am

    Oh the disappointment..

    What a disaster this is.. I’m gaming CB1 irons and I’m waiting for the Fast 12 LS driver and matching woods to arrive and I’m glad I got to buy the clubs before TM ruins the brand..

    Adams might have been a niche product in the golfing industry, but the made serious woods and hybrids and some top irons as well..

    Gues the guys at TM couldn’t stand being second when it came to performance and innovation in the woods and hybrids..

    RIP Adams
    - You’ll be missed…

  19. larry spittler

    March 20, 2012 at 12:46 am

    Have been playing Adams for last 12 years and I am glad I just my new set before Taylor Made gets a chance to trash the brand. May have to check ebay for a used set to keep as a back up. Sad day for golf. Thanks Barney for being true for as long as you could.

  20. Adam bray

    March 19, 2012 at 10:32 pm

    BLAH! There goes Adams and Yes!. Taylor Made is all about the gimmick. Get ready for Adams drivers to start showing up painted white and adjusting 5 different ways but feel like total garbage and Yes! putters showing up with stupid names like Rock-it-putter.

    RIP Adams.

  21. Steve

    March 19, 2012 at 9:28 pm

    Not a fan of this move. Callaway bought out Hogan and squashed it to never be heard from again. i think Adams is a great brand and a great company to deal with. Taylor Made stinks if you’re a green grass golf course. Sorry to see it happen.

  22. fran21356

    March 19, 2012 at 8:08 pm

    I saw what Taylor Made did to the quality of Maxfli’s irons after buying them up. They were trash and I’m afraid they’ll do the same thing to Adams. Adams will do the R&D and Taylor Made will use it in their clubs. They were always at best number two when it came to hybrids so they bought up the competition and will probably destroy what was a quality company that made top notch clubs for golfers who didn’t want to pay $500.00 for a club. Sorry to hear the news Barney, we’ll miss you.

  23. baker

    March 19, 2012 at 8:05 pm

    Kelli Kuehne won the US Women’s Amateur playing Adams irons when they were the only thing he sold. Sold out of a stall at Hank Haney’s Golf Ranch.

  24. nikksto

    March 19, 2012 at 7:11 pm

    Slayed by the Giant.
    All this so they can win the hybrid count on tour…..sad, sad day.

  25. PinkGolf

    March 19, 2012 at 6:36 pm

    No mention of the #1 Player on the LPGA Yani Tseng who uses Adams Golf Clubs – uh yes she a golf pro and Brittany Lincicome #10 on Rolex ranking also uses Adams. Adams clubs are not just for seniors and amauteur women golfers! I hope they stay true to Adams brand, and don’t merge them.

  26. Timothy

    March 19, 2012 at 6:36 pm

    Truly a sad day in Golf. I am going to miss Adams iron and hybrid innovation. The A12 forged irons and A12 hybrid are my favorite clubs. Looks like all the irons are going to be bent 4 degrees forward and a half inch longer and branded with RBZ and called the longest hitting irons on the market. uuggghh. no more forged irons to I assume.

  27. Bryan

    March 19, 2012 at 6:10 pm

    I guess I should have said Idea Pro rather than CB1 since Adams has already stopped producing that particular model.

  28. Bryan

    March 19, 2012 at 6:05 pm

    Agreed again – What will happen to the CB1 and MB line? Will they remove it so it doesn’t compete with the 0-4 handicapper segment? I really hope they don’t start sticking the “made for” shafts in Adams gear.

  29. Greg

    March 19, 2012 at 10:00 am

    This is truely terrible news for those of us that love the Adams gear that isn’t targeted at high-handicappers, seniors and ladies. RBZ strikes again.

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