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Adidas sells TaylorMade to KPS Capital Partners for $425 million

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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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  1. 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.

  2. 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.

  3. 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…

  4. 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!

  5. 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….?

  6. rebfan73

    May 11, 2017 at 7:21 am

    Or WWE….

  7. 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. 🙂

  8. 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

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. Scott

    May 10, 2017 at 5:32 pm

    Yawn

  14. IH

    May 10, 2017 at 5:05 pm

    I thought the amount would be biggerer lol

  15. 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

  16. golfraven

    May 10, 2017 at 4:55 pm

    Does Rory need to worry about his next paycheque? Doubtful!

  17. 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…

  18. 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 ….!!

  19. 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……

  20. TCJ

    May 10, 2017 at 3:19 pm

    First!

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Tour Photo Galleries

WRX Retrospective: Interesting photos from the 2019 Masters

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As of now, we know the 2020 Masters is going to have to wait until November. The tournament will be as exciting as it will be interesting since it will be the first modern glimpse into Augusta National beyond April.

It has also given us the great opportunity to look back with hindsight 20/20 (that was very much an unintended pun) at our pictures from 2019 to showcase some of the most noteworthy and interesting, including some potential foreshadowing of the week that was to come.

2007 Masters champion Zach Johnson isn’t one to change putters too often, but he must have been searching for something last year when testing out this TaylorMade Spider.

This was Viktor Hovland’s last Masters as an amateur. He won low amateur honors and went on to capture the same distinction at the U.S. Open at Pebble Beach.

TaylorMade always does a wonderful job with major-themed accessories and bags. 2019 was no exception.

Little did we know at the time this was taken, this man would be leading heading into Sunday’s final round. How the tables turned so quickly.

Callaway’s collab with Seamus Golf lead to these flower-themed headcovers.

We can’t forget that Tuesday practice day was rained out and the course was closed at 10 a.m. to both players and spectators. It wasn’t the warm spring kickoff many had hoped for!

Although it was short-lived, it was a rainy Tuesday for all, including caddies.

The weather broke on Wednesday and the view up the 10th hole never gets old.

Did you realize two-time Masters champ Bubba Watson’s Flightscope has a custom pink paint job?

Inexpensive snacks and beverages are always a highlight of any Master’s visit.

The 2019 Masters featured pre-bulked Bryson, who also happened to have a custom FlightScope X3. He looks like a veritable stick!

They say a picture says 1,000 words, but in the case of Tiger Woods, we had no idea how many words would be written come Sunday.

A peek into the bag of Gary Woodland, who would go on to become the U.S. Open Champion only a few months later.

Special shoutout to Gary Woodland’s caddy Brennan Little, who hails from St. Thomas, Ontario, Canada, and is obviously a big Toronto Blue Jays fan. He was also on the bag for Mike Wier’s win in 2003.

Although the relationship was short-lived, Sergio used some very cool custom Toulon putters while on staff with Callaway Golf.

The eighth green is one of the most interesting and mounded on the course, there’s not a bunker to be found but danger lurks everywhere.

Undulations at No. 1 are a sight to be seen at ground level.

The iconic, understated clubhouse of ANGC.

The tucked-away first tee spike cleaner is something every course should have.

And of course, the iconic 12th, where so much would be decided come Sunday.

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Tour Photo Galleries

10 interesting photos from the 2020 Players Championship

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GolfWRX is live this week from the 2020 Players Championship at TPC Sawgrass in Ponte Vedra Beach, Florida.

The field this week featured the best golfers in the world, including Rory McIlroy, Jon Rahm, Brooks Koepka, Dustin Johnson, Justin Thomas, Rickie Fowler, and more.

Rory McIlroy enters the tournament as the defending champion, looking hoist the crystal again.

Check out all our galleries below, along with highlights from TPC Sawgrass.

General Galleries

Special Galleries

Bettinardi’s St. Patrick’s Day covers  

Brand-new Srixon 745 in Keegan’s bag

Roger Sloan’s custom Cameron

Mizuno JPX 919 Hot Metal irons spotted in Nick Watney’s bag 

Joel Dahmen with a battle-worn hybrid

Fresh eggs for Patrick Reed…

Justin Rose continues to tweak his equipment

Carlos Ortiz looks to be picking up some supplies to mark the end of his driveway…

Jordan Spieth with a Vokey WedgeWorks Proto 60T in the bag

Kiradech Aphibarnrat with lead tape and stamping on cavity-back irons. Solid! 

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GolfWRX Spotted: Justin Rose with mixed bag at Arnold Palmer Invitational

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It’s not very often we get breaking equipment news this time of year on the PGA Tour schedule, but this week at the Arnold Palmer Invitational, one of the highest-profile players on tour, Justin Rose, was spotted testing multiple brands of clubs throughout his entire bag.

It started last week at the Honda Classic when Rose put a TaylorMade SIM driver with Mitsubishi Kuro Kage in play. As of today’s first round at the Arnold Palmer Invitational, Rose has a mixed set including TaylorMade, Cobra, and Titleist clubs, along with an Axis1 putter.

Here are the details of Rose’s equipment:

Driver: TaylorMade SIM (10.5 degrees @ 8.5)
Shaft: Mitsubishi Kuro Kage XTS 70 TX

3-wood: TaylorMade SIM Max (15 degrees)
Shaft: Mitsubishi Kuro Kage XTS 80 TX

5-wood: Cobra SpeedZone Tour (16.5 degrees)
Shaft: Mitsubishi Diamana D+ 80 X

Irons: TaylorMade P730 (4-PW)
Shafts: Project X 6.5

Wedges: TaylorMade MG2 (52, 56 degrees), Titleist Vokey Design Prototype K Grind (60 degrees)
Shafts: Project X 6.5 (52, 56), Proto Hi-Rev 135X (60)

Putter: Axis1 Rose
Grip: Flat Cat Svelte

Ball: TaylorMade TP5 ‘19 (No. 1)

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