Adidas rakes in USD425 million in sales of Taylormade

Taylormade adidas

German sportswear maker Adidas is selling its golf equipment and clothing brands TaylorMade, Adams Golf and Ashworth to private equity firm KPS Capital Partners, for USD425 million.

Adidas is expected to get receive the said amount,but around half will be paid in cash and the rest in secured notes and contingent considerations, the company said in a release.

“TaylorMade is a leading global golf brand with an exceptionally strong market position,” said Kasper Rorsted, CEO of Adidas AG in a release. “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.”

The German-based company announced a year ago its intentions to sell its TaylorMade, Adams and Ashworth brands to focus on higher-growth opportunities, especially in apparel and shoes. TaylorMade was founded in 1979 by golf equipment salesman Gary Adams with a focus on metalwoods, and the brand was purchased by Adidas in 1998.

“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,” Rorsted said.

New York-based KPS Capital, which manages more than USD5.7 billion in investments, counts Chassis Brakes and Heritage Home Group among their other portfolio holdings.

Guggenheim Securities served as exclusive financial advisor to Adidas, while Richter & Hampton acted as legal counsel.

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