TaylorMade, Ashworth and Adams have been sold to private equity firm KPS Captial Partners for $425m almost a year to the day after adidas Group put them up for sale.
The deal is expected to be completed by the end of the year – bringing an end to a 20-year association between adidas and TaylorMade – and comes just a day after news broke of Rory McIlroy’s $100m contract to play TaylorMade clubs.
“TaylorMade is a leading global golf brand with an exceptionally strong market position,” said Kasper Rorstead, CEO of adidas AG.
“We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership.”
TaylorMade, Ashworth and Adams were put up for sale on May 4, 2016, after revenues at TaylorMade-adidas Golf decreased by 1% for the first quarter of the year, while the rest of the adidas Group enjoyed a 26% growth.
The negative results were largely blamed on the sales declines at Ashworth and Adams and it is unclear as yet what the long-term future of both of those brands will be under the new owners.
David Abeles, CEO of TaylorMade, added: “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.
“Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
David Shapiro, a managing partner of KPS, said: “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.
“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.”