KPS Capital Partners has agreed to acquire TaylorMade Golf Co., which includes the TaylorMade, Adams and Ashworth brands. KPS will buy the company for total consideration of $425 million from adidas AG. Half of the purchase price will be paid in cash, with the balance in a combination of secured note and contingent considerations.
KPS Capital Partners, LP (“KPS”) announced today that, through a newly formed affiliate, it has signed a definitive agreement to acquire the TaylorMade Golf Company – including the TaylorMade, Adams and Ashworth brands (collectively, “TaylorMade”) – from adidas AG for total consideration of $425 million, around half of which will be paid in cash with the remainder in a combination of secured note and contingent considerations.
Founded in 1979 and headquartered in Carlsbad, California, TaylorMade is a leading designer and manufacturer of high-performance golf equipment, golf balls and accessories, with industry-leading innovative products like M1 metalwoods, M2 irons and TP5 golf balls. TaylorMade plays a critical role on the PGA TOUR with one of the strongest athlete portfolios in golf, including six players ranked in the current Top 12 in the world.
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. We look forward to working with Chief Executive Officer David Abeles, his management team and all TaylorMade employees around the world to build on this great platform by driving growth both organically and through strategic acquisitions. 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.”
David Abeles, Chief Executive Officer of TaylorMade, said, “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. The TaylorMade team is deeply committed to making the most technically advanced performance-driven golf equipment, and this mission will never change. Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
Completion of the transaction is expected later in 2017 and is subject to customary closing conditions and approvals.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Deutsche Bank Securities Inc. acted as exclusive financial advisor to KPS.
About TaylorMade Golf Company
Headquartered in Carlsbad, California, TaylorMade Golf is a leading manufacturer of high performance golf equipment and golf balls and a major force on the PGA TOUR. With industry-leading innovative products like M1 metalwoods, M2 irons and TP5 golf balls, TaylorMade has one of the strongest athlete portfolios in golf, with six players in the current Top 12 in the world. Key athletes include world no.1 Dustin Johnson, world no.2 Rory McIlroy, world no.3 Jason Day, Masters champion Sergio Garcia, Olympic champion Justin Rose and world no.12 PGA TOUR rookie Jon Rahm.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.3 billion of assets under management. For over two decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS is a global private equity firm, with offices in New York and Frankfurt. KPS, through affiliates, has achieved notable success in Europe, acquiring businesses or assets from leading European companies, including: Bosch Group, ThyssenKrupp AG, Gütermann Holdings, Waterford Wedgewood Plc, Daimler, and adidas AG (pending). KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $3.9 billion, operate 103 manufacturing facilities in 24 countries, and employ approximately 40,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.