adidas agrees to divest golf brands to KPS Capital Partners for $425m
adidas has agreed to divest three of its golf brands to a newly formed affiliate of KPS Capital Partners in a $425m deal.
The sale is in line with the company's strategy to focus on footwear and apparel and on its two adidas and Reebok brands.
Under the terms of the agreement, Adidas will offload its TaylorMade, Adams Golf and Ashworth golf brands.
adidas CEO Kasper Rorsted said: “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.
“At the same time, we welcome all adidas Golf employees who will be integrated into our adidas Heartbeat Sports Business Unit.”
Subject to customary closing conditions, the divestiture is expected to be completed by the end of this year.
adidas has put the golf brands up for sale last year, according to media sources.
The company respectively acquired TaylorMade, Ashworth and Adams in 1997, 2008 and 2012.
KPS Capital Partners will pay 50% of the transaction amount in cash, with the remainder in a combination of secured note and contingent considerations, adidas stated.
Guggenheim Securities has served as exclusive financial adviser to adidas, and Sheppard, Mullin, Richter & Hampton served as legal counsel.
Image: Adidas will offload its TaylorMade, Adams Golf and Ashworth golf brands. Photo: courtesy of adidas.