Thursday, June 1, 2017

Adidas selling golf equipment businesses, including Taylormade, to focus on clothes and shoes

Adidas AG said Wednesday that it will sell its golf brands TaylorMade, Adams Golf and Ashworth to a newly formed affiliate of private-equity firm KPS Capital Partners for $425 million.
About half of the sale price will be paid in cash and the remainder will be a combination of secured notes and other borrowing, according to a press release. The deal is expected to close in 2017.
Adidas ADS, +0.21% said it will record a one-time charge in the high double-digit to low triple-digit million euros range.
Adidas is following in the footsteps of its rival Nike Inc. NKE, +0.04% which announced last year that it would focus on golf clothing and move away from selling gear like golf clubs and balls.
“Within our long-term strategy ‘Creating the New,’ our focus is clearly on our core competencies in footwear and apparel and on our two major brands Adidas and Reebok,” said Adidas Chief Executive Kasper Rorsted, in a statement.

I don't know how much or if at all anyone follows golf, but Nike and Adidas have been two major companies in the golfing business, any thoughts on this?


  1. I think its smart on both parts by focusing just on clothing as the brands who focus on solely golf (Calloway, Taylormade, Titalist etc.) seem to have a higher reputation around the golfing world. And Nike and Adidas have a good reputation with clothing.

    1. I agree with Brad. When I think of Adidas/Nike, I think of athletic clothing. Furthermore, I am not a golfer myself but I do believe many avid golfers will choose Calloway over Nike/Adidas anyways for golf gear because of that reputation.

  2. I agree with Brad. While I golf occasionally, and would buy anything with the Nike swoosh on it, I believe most avid players probably buy their equipment from the more reputable golfing brands Brad mentioned.

    Also, they are selling their equipment departments for a reason. I'd guess sales are trending downward. We can only hope Tiger will rebound soon and once again bring the sport back to glory.