Parent company adidas Group adds major name to its golf brands stable
Representation: Staff ambassadors of the Adams Golf brand include Aaron Baddeley and Tom Watson
The adidas Group and Adams Golf have announced that TaylorMade-adidas has entered into a 'definitive agreement' to acquire all of the outstanding shares in Adams.
The transaction value is approximately $70million, which represents approximately 71% of the share price prior to Adam's announcement that it was examining strategic alternatives in January this year.
In their joint statement, the brands said: "Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforces its position as the world's number one player in golf.
"The addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers."
The adidas Group's CEO, Herbert Hainer, added: "This acquisition reflects our commitment to continued growth in the golf category.
"The proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement, as well as senior and women golfers, with TaylorMade-adidas Golf's focus on the younger and the low-to-mid handicap golfer."
The board of directors of Adams Golf unanimously approved the transaction. Certain insiders, who own approximately 35%of Adams Golf's outstanding shares, have agreed to vote their shares in favor of the transaction.
The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals, as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.
TaylorMade-adidas president and CEO Mark King said: "We are very excited to team up with Adams Golf, whose management team we have respected for many years.
"Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal."
Barney Adams, who assumed his position as Adams Golf interim CEO following former chief Chip Brewer's move to Callaway, commented: "This merger provides strong opportunities for our employees, suppliers and partners.
"The Adams Golf brand will fit nicely into TaylorMade-adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources.
"We are also excited that TaylorMade-adidas Golf has decided to maintain Adams Golf's headquarters in Plano, Texas."