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.