• The adidas Group has confirmed details this morning
• Ready to enter 'concrete negotiations' for its brands
• It will keep adidas Golf footwear and apparel
The adidas Group has announced ‘most of its golf division’ is up for sale after revenues at TaylorMade-adidas Golf decreased by one-per-cent for the first quarter of 2016.
That is in comparison to the full adidas Group, which enjoyed 26% growth throughout the first four months of this year.
The negative results have been largely blamed on the sales declines at Ashworth and Adams, which offset the growth its core brands - TaylorMade and adidas Golf - have achieved. According to Golf Club Management, the sale is due to a drop in participation in the game.
This morning the company announced it has concluded its analysis of the future options for the company’s golf business. As a result, the executive board decided to enter into concrete negotiations with interested parties for parts of the company’s golf division.
The company says it is actively seeking a buyer for the TaylorMade brand as well as the Adams and Ashworth brands.
“TaylorMade is a very viable business. However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market,” said Herbert Hainer, chief executive of the adidas Group.
“With its leadership position in the industry and the turnaround plan gaining traction, I am convinced that TaylorMade offers attractive growth opportunities in the future.
“At the same time, the planned divestiture will allow us to reduce complexity and focus our efforts on those areas of our business that offer the highest return and where we can have the biggest impact in reaching our consumers and winning their loyalty for the adidas and Reebok brands."
TaylorMade-adidas Golf to be split up
Adidas bought the TaylorMade brand in 1997 along with Salomon, developing it into one of the biggest and best known equipment companies in golf.
The sportswear maker has said it will keep its adidas Golf shoe and apparel business but is now seeking a purchaser for the TaylorMade clubs division, Adams and Ashworth.
The adidas Group revealed a final decision on any sale is subject to approval by the Supervisory Board.