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Adams Golf’s Brewer Says Sale, Dividend Among Strategic Options
Bloomberg Buisness Report today By: Matt Townsend.
Adams Golf Inc., the golf club seller that today said it hired Morgan Stanley to review strategic alternatives, may consider among its options a sale or starting a dividend, Chief Executive Officer Chip Brewer said.
Potential suitors for Plano, Texas-based Adams include Callaway Golf Co., Nike Inc. and Adidas AG, said a person familiar with the matter, who declined to be identified because the discussions are private.
Adams Golf, founded by Chairman Barney H. Adams in 1987, boosted sales 14 percent to $97.4 million in the 12 months ended Sept. 30. After posting a net loss of $12.2 million in 2009, the company has made money in six of the past seven quarters. The shares, which gained 37 percent last year, rose 4.3 percent after the close to $6.58 at 6:32 p.m. in New York.
“We are going to go through with a process that best helps shareholder value,”
Brewer said today in a telephone interview.
Morgan Stanley, based in New York, advised Fortune Brands Inc. last year on the sale of its Titleist golf unit to a group led by Fila Korea Ltd. for $1.23 billion in cash.
The review may not result in a transaction, Adams said today in a statement.
Click here to read entire article on bloomberg… http://www.businessweek.com/news/2012-01-05/adams-golf-s-brewer-says-sale-dividend-among-strategic-options.html
According to a thread on GolfWRX one writer says:
Who’s buying Adams? I’m guessing Under Armour. Golfbiz is reporting Adams is for sale. My question is who’s the players? Under Armour was a rumor on Titleist/Acushnet, could they be interested in Adams now, who’s gotta be cheaper that the Titleist acquisition. Ideas?
On GolfWRX reader are all over this. Suitors have been picked. Click here to read discussion in the forums… http://www.golfwrx.com/forums/topic/564999-whos-buying-adams-im-guessing-under-armour/