How much does it cost to buy TaylorMade, Adams Golf, and Ashworth from Adidas? The number is $425 million.
Adidas officially exited the golf equipment business after selling their brands to KPS Capital Partners, a private equity firm based out of New York. The announcement of the sale came a day after Rory McIlroy’s 10-year, $100 million deal with TaylorMade was publicized at the Players Championship on Tuesday.
“TaylorMade is a leading global golf brand with an exceptionally strong market position. 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,” said Kasper Rorsted, CEO of Adidas AG. At the same time, we welcome all Adidas Golf employees who will be integrated into our Adidas Heartbeat Sports Business Unit.”
According the ESPN’s Darren Rovell, Adidas’ golf equipment business has been trending downwards over the last few years. Adidas’ revenue in the industry was $1.7 billion in 2012 but down to about $500 million four years later.
With Adidas and Nike both out of the golf equipment market, where TaylorMade goes from here will be interesting to follow, considering the company’s roster of top-tier PGA players. Their team includes (with world rankings as of 5/7/17):
- Dustin Johnson – No. 1
- Rory McIlroy – No. 2
- Jason Day – No. 3
- Sergio Garcia – No. 6
- Justin Rose – No. 8
- Jon Rahm – No. 12
Despite the sale, Adidas will continue to outfit Johnson and Garcia with their apparel and shoes.
h/t: espn.com, golfdigest.com, cbssports.com, owgr.com