Adidas has announced the successful completion of its acquisition of club manufacturer Adams Golf in a transaction valued at approximately US$70 million.
The takeover was first proposed in March and represents a premium of approximately 71% to Adams’ share price prior to its announcement in January that it was examining strategic alternatives. Adidas said the acquisition adds a further strong golf brand to a portfolio that already includes TaylorMade, Adidas Golf and Ashworth.
“We’ve long admired Adams Golf’s enthusiasm for incorporating performance technologies into its equipment, just as TaylorMade-Adidas Golf does,” said Mark King, president and CEO of TaylorMade-Adidas Golf Company. “Uniting the talents of the TaylorMade-Adidas Golf and Adams Golf research and development departments will help us develop even better equipment for the target consumers of both brands.”
In recent years, the majority of Adams Golf’s sales have been generated in the United States. TaylorMade-Adidas Golf plans to use its worldwide distribution channels, established with the help of the Adidas Group, to develop Adams Golf into a global brand, creating the potential to increase sales of Adams Golf.
“This is an incredibly exciting time for us at TaylorMade-Adidas Golf,” added King. “We’ve just recorded the best first-quarter performance in the company’s history, and we’re on course to celebrate another record year. Adams Golf also got off to an excellent start in 2012, with sales up 25% in the first quarter. Adding the Adams Golf brand will make the organisation even better equipped to serve the needs of all types of golfers, helping us continue our quest to be the best golf company in the world in terms of the quality of our products, our presence on Tour and the volume of our sales.”
Adidas seals Adams Golf takeover