Tour News
Adidas sells TaylorMade to KPS Capital Partners for $425 million
Adidas has sold its golf brands TaylorMade, Adams and Ashworth to New York City-based private equity firm KPS Capital Partners for $425 million. The athletic-apparel giant had been actively seeking a buyer for its golf brands since this time May 2016.
The news was announced in a press release, which stated that the sale will be “half … paid in cash with the remainder in a combination of secured note and contingent considerations.” Completion of the transaction is expected later this year.
“This is the beginning of an exciting new era for TaylorMade, and our entire management team is excited to partner with KPS in this next phase of our growth and continued development of our brands, business and people,” said David Abeles, Chief Executive Officer of TaylorMade. “The TaylorMade team is deeply committed to making the most technically advanced performance-driven golf equipment, and this mission will never change. Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
KPS is a private equity firm headquartered in New York City. The company says it “generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage.” It currently manages a family of investment funds worth approximately $5.3 billion.
TaylorMade’s annual sales reached a peak of $1.7 billion in 2013, but the sales have slumped in recent years. An article published by the New York Post in February stated that TaylorMade annual sales had slipped to less than $500 million and that the Carlsbad California-based company was losing between $75-100 million each year.
“TaylorMade is one of the preeminent golf equipment brands worldwide, with leading-edge products that consistently provide consumers a distinct performance advantage over the competition,” said David Shapiro, a Managing Partner of KPS. “We look forward to working with Chief Executive Officer David Abeles, his management team and all TaylorMade employees around the world to build on this great platform by driving growth both organically and through strategic acquisitions. The combination of this iconic brand and KPS’ track record of working constructively with talented management teams to make businesses better will provide the ideal foundation for TaylorMade’s future growth.”
While TaylorMade’s sales have slowed, its presence on the PGA Tour has not. Yesterday, the company announced that it had signed Rory McIlroy to deal to use its golf clubs and golf ball. It now has endorsement deals with the top-3 golfers in the world: Dustin Johnson (No. 1), McIlroy (No. 2) and Jason Day (No. 3).
In January, TaylorMade also signed 14-time major champion Tiger Woods to an endorsement deal. The company also has a deal with one of the hottest young golfers on the PGA Tour, 22-year-old John Rahm.
Adidas said last year that it planned to continue to produce golf shoes and apparel even after the sale of TaylorMade, Adams and Ashworth, and the press release mentioned no change in Adidas’ strategy.
Related: See what GolfWRX Members are saying about TaylorMade’s sale in our forum.
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Tour Photo Galleries
Photos from the 2024 Players Championship
On the heels of Scottie Scheffler’s dominant victory at Bay Hill, the PGA Tour heads a little farther north in Florida to TPC Sawgrass this week for The Players Championship. And of course, GolfWRX is on site to get a look at what the players are playing.
We’ve already spotted a new Titleist mini driver this week, and there’s plenty more.
Check out our photos below!
Pullout Albums
- New Titleist 2 wood – 2024 The Players Championship
- Cam Young testing Titleist’s new 2-wood – 2024 THE PLAYERS Championship
- Hole Nos. 17 and 18 – 2024 THE PLAYERS Championship
- Toulon Small Batch Texas putter – 2024 The Players Championship
- Swag Golf custom headcovers – 2024 The Players Championship
- New Ping PLD staff bags – 2024 The Players Championship
- SuperStroke St. Patrick’s Day putter grip – 2024 The Players Championship
- Taylor Montgomery using PuttView X training goggles – 2024 The Players Championship
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Tour Photo Galleries
Photos from the 2024 Arnold Palmer Invitational
GolfWRX is on the ground in Orlando ahead of the 2024 Arnold Palmer Invitational at Bay Hill Club & Lodge.
We’re assembling our usual collection of WITB photos, general galleries, and of course, gear inspired by the King himself.
We’ll continue to add to the photos below as more flow in from Florida.
General Albums
- 2024 Arnold Palmer Invitational – Monday #1
- 2024 Arnold Palmer Invitational – Monday #2
- 2024 Arnold Palmer Invitational – Monday #3
- 2024 Arnold Palmer Invitational – Tuesday #1
- 2024 Arnold Palmer Invitational – Tuesday #2
- 2024 Arnold Palmer Invitational – Tuesday #1 (thanks, bvmagic!)
- 2024 Arnold Palmer Invitational – Tuesday #3 (bvmagic)
- 2024 Arnold Palmer Invitational – Tuesday #2 (bvmagic)
WITB Albums
- Matt (LFG) Every – WITB – 2024 Arnold Palmer Invitational
- Sahith Theegala – WITB – 2024 Arnold Palmer Invitational
- Scottie Scheffler – WITB – 2024 Arnold Palmer Invitational
- Luke List – WITB – 2024 Arnold Palmer Invitational
- Adam Schenk – WITB – 2024 Arnold Palmer Invitational
- Taylor Moore – WITB – 2024 Arnold Palmer Invitational
- David Ford – WITB – 2024 Arnold Palmer Invitational
- Patrick Cantlay – WITB – 2024 Arnold Palmer Invitational
Pullout Albums
- New Cameron putters (and new “LD” grip) – 2024 Arnold Palmer Invitational
- New Bettinardi MB & CB irons – 2024 Arnold Palmer Invitational
- Custom Bettinardi API putter cover – 2024 Arnold Palmer Invitational
- Custom Swag API covers – 2024 Arnold Palmer Invitational
- New Golf Pride Reverse Taper grips – 2024 Arnold Palmer Invitational
- New PXG putters – 2024 Arnold Palmer Invitational
- Scottie Scheffler putter change – 2024 Arnold Palmer Invitational
- Sepp Straka – shaft change to new Ventus blue – 2024 Arnold Palmer Invitational
- Rickie Fowler’s new Cobra Darkspeed X driver and Denali shaft (and Radspeed 3-wood) – 2024 Arnold Palmer Invitational
- Justin Rose testing Srixon Z Forged II irons – 2024 Arnold Palmer Invitational
See what GolfWRXers are saying in the forums.
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Tour Photo Galleries
Photos from the 2024 Cognizant Classic
GolfWRX is on site this week at the Cognizant Classic —FKA the Honda Classic.
The first leg of the PGA Tour’s traditional “Florida swing,” the Cognizant Classic continues to be contested at PGA National’s Champion Course in Palm Beach Gardens, Florida, host course of the 1983 Ryder Cup and 1987 PGA Championship. The course is known for its famed “Bear Trap,” a three-hole stretch of holes that take their name from Jack “The Golden Bear” Nicklaus, who redesigned the course in 2002.
The Bear Trap includes No. 15 (a par 3), No. 16 (a par 4), and No. 17 (a par 4). All three holes involve water and have led to several big numbers from Tour players over the years.
Check out an assortment of general galleries, WITBs, and pullout albums below.
We’ll continue to update the galleries as more photos flow in from Florida!
General Albums
- 2024 Cognizant Classic – Monday #1
- 2024 Cognizant Classic – Monday #2
- 2024 Cognizant Classic – Monday #3
- 2024 Cognizant Classic – Monday #4
- 2024 Cognizant Classic – Tuesday #1
WITB Albums
- Brandt Snedeker – WITB – 2024 Cognizant Classic
- Max Greyserman – WITB – 2024 Cognizant Classic
- Eric Cole – WITB – 2024 Cognizant Classic
- Carl Yuan – WITb – 2024 Cognizant Classic
- Russell Henley – WITB – 2024 Cognizant Classic
- Justin Suh – WITB – 2024 Cognizant Classic
- Alex Noren – WITB – 2024 Cognizant Classic
- Shane Lowry – WITB – 2024 Cognizant Classic
- Taylor Montgomery – WITB – 2024 Cognizant Classic
- Jake Knapp (KnappTime_ltd) – WITB – – 2024 Cognizant Classic
- Sam Ryder – WITB – 2024 Cognizant Classic
- Maverick McNealy – WITB – 2024 Cognizant Classic
- Tua Tagovailoa mini WITB (NFL QB, Miami Dolphins) – 2024 Cognizant Classic
Pullout Albums
- New Super Stoke Pistol Lock 1.0 & 2.0 grips – 2024 Cognizant Classic
- LA Golf new insert putter – 2024 Cognizant Classic
- New Garsen Quad Tour 15 grip – 2024 Cognizant Classic
- New Swag covers – 2024 Cognizant Classic
- Jacob Bridgeman’s custom Cameron putter – 2024 Cognizant Classic
- Bud Cauley’s custom Cameron putters – 2024 Cognizant Classic
- Ryo Hisatsune’s custom Cameron putter – 2024 Cognizant Classic
- Chris Kirk – new black Callaway Apex CB irons and a few Odyssey putters
- Alejandro Tosti’s custom Cameron putter – 2024 Cognizant Classic
- Joohyung Tom Kim’s “new” center-shafted Scotty Cameron putter – 2024 Cognizant Classic
See what GolfWRXers are saying in the forums.
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Darryl
May 15, 2017 at 7:57 am
TM signed Rory to deny Callaway the chance, if they hadn’t made an offer at least matching Callaways, he would have just signed for Callaway for the money and quietly put a disguised M2 in the bag, this way they get to shout it from the rooftops and damage Callaway all in one.
Rory shifting to the M2 will badly damage the sales of the Epic. If DJ, JD and Rory are all using one driver it will sell like free intercourse.
Callaway thought having Henrik and the prospect of Rory on the books would make the Epic a slam dunk best seller, but with Henrik off the boil (and still using his 3 wood a lot) and Rory deciding the TM product is better. That can’t be good for Callaway, so much so that I notice their Epic ad says that its the best selling driver of 2017 but has a very big visible disclaimer at the bottom saying “based on results from Jan – Mar 2017” so they clearly don’t think the Q2 numbers are going to be so good.
What TM have wasted money on is signing Tiger. He’s unlikely to play a major role in tournament golf again, so new young players wont know him any better than I knew Hogan or Snead, a once great player, now just a name in the record books. With Nike not making equipment any more, the Tiger fanboys that insist on playing whatever their hero plays would have to switch anyway and that number will drop year on year with him out of the game anyway.
Is this the final cycle of big money deals as golf settles into a post Tiger era? It’s unlikely any of the new crop of superstars will dominate as he did, so is it worth tying them down to 10 year $100M+ deals? 4 years ago everyone thought Rory was the heir apparent and would challenge the Major tallys of both Woods and Nicklaus, not so. 2 years ago everyone thought Speith was the T-Rex and would rule for a thousand years, not so. 18 months ago it was Jason Day, 12 Months ago DJ, 6 months ago Justin Thomas. But they all look like they will settle into a nice routine of 6 months each at the top and then a rest. That isn’t worth $10m a year.
Don Greco
May 12, 2017 at 6:32 pm
Love the press release; makes it sound like the world’s greatest golf manufacturing company….just pay no attention that is was sold at a firesale price. There are only so many golfers out there…..it’s a niche game, always will be. Mass marketing just not a good fit for the golf industry. ….there aren’t enough players who need new gear as frequently as the manufacturers had hoped. Every “grow the game” article in any golf magazine is really a marketing pitch for new customers.
munchies
May 11, 2017 at 8:02 pm
Three steps to black – 1. stop paying ridiculous endorsement fees to tour players, drop few of them 2. cut off management 3. stop dropping bucket loads in marketing, focus in quality offering…
David Ables
May 11, 2017 at 12:32 pm
Peace out guys. I’m off to run Adidas South America. Just like Mark King flooded the golf market then got a promo with Adi NA!
M-Herd4
May 11, 2017 at 9:54 am
Why would a struggling company like TM sign Rory to a $100M contract when the entire company itself is only valued at $425M?? They already have a stable of elite players that haven’t helped their financial health significantly…
Forsbrand
May 11, 2017 at 4:24 pm
Could Rory himself along with Tiger be part of the investment?
munchies
May 11, 2017 at 9:23 pm
I know unbelievable. Wouldn’t there be a point of diminishing returns? You have DJ and Tiger on the book already, would adding Rory will increase the club sales proportionally? I would venture to say no..
Tom1
May 12, 2017 at 10:47 am
100 mil, I searched and couldn’t find that info….?
rebfan73
May 11, 2017 at 7:21 am
Or WWE….
Mat
May 11, 2017 at 5:57 am
Here’s to hoping they break the release cycle madness. It is good IP, but the lack of price strength hurts the premium margins. And back off the damn lofts. 🙂
rebfan73
May 11, 2017 at 7:20 am
+1
Craig
May 11, 2017 at 4:47 am
Good to see the keyboard warriors at it again. A quick bit of research on the JPS website will actually show they have a history of INVESTING in companies by improving and streamlining supply chain and manufacturing and growing their investments . Could mean Taylormade might actually improve on delivery and custom build times!!! Time will tell
Simms
May 10, 2017 at 10:56 pm
Darn, I was hoping Ashworth would buy back his name and we could have some descent fitting quality golf shirts again…..
MMM
May 11, 2017 at 10:56 am
You should look at LinkSoul……that’s the company John Ashworth started after he got bought out.
alan
May 10, 2017 at 9:43 pm
as long as my next taylormade driver is 14 yards longer than the one i bought 6 months ago i dont care who owns taylormade.
toyzrx
May 10, 2017 at 7:13 pm
Nothing in economy suggests that investment into golf anything is money well spent. I see more layoffs and budget tightening coming to TM. I was hoping TM be bought by another big sport OEM, or merge with Callaway or Titleist.
jc
May 10, 2017 at 5:33 pm
now they will have to come out with a new driver every 4 months instead of every 6 months. And it will go 5 yards father of course.
Scott
May 10, 2017 at 5:32 pm
Yawn
IH
May 10, 2017 at 5:05 pm
I thought the amount would be biggerer lol
Adrien Jenot
May 10, 2017 at 4:55 pm
I bet they stop making new clubs every year now… (structurally improving the strategic position, competitiveness and profitability of its portfolio companies) I for one am glad the golf market is going back to reality. It reminds me of a recent crash lol
golfraven
May 10, 2017 at 4:55 pm
Does Rory need to worry about his next paycheque? Doubtful!
Jeb Springfield
May 10, 2017 at 4:27 pm
Fairly sure if you use he “word” “prolly,” you’re not clearing $25M.
NolanMBA
May 10, 2017 at 4:31 pm
That Facebook creator wears hoodies to board meetings…
Orvill
May 10, 2017 at 4:21 pm
Heck…. I wuldn’ta paid more than $375 Mill for TM….. and then sold it off in chunks ….. drivers… irons… putters… balls… bags… and prolly cleared $400 Mill with $25 Mill profit …. and then flipped off Ashworth and Adams ….!!
Joe
May 10, 2017 at 3:24 pm
No luck involved, the signing of Rory was most likely part of whatever deal they came to. Once a Private Equity firm takes hold it’s all down hill……
TCJ
May 10, 2017 at 3:19 pm
First!
Tyson Rochambeau
May 10, 2017 at 4:23 pm
Straight from mom’s basement
gwillis7
May 10, 2017 at 7:56 pm
lol