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Adidas to Sell TaylorMade, Adams Golf and Ashworth to KPS for $425M

Adidas to Sell TaylorMade, Adams Golf and Ashworth to KPS for $425M

Adidas began actively seeking a buyer last year, as reported by ExitHub. “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,” said Adidas CEO Kasper Rorsted. “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.” Adidas designs, develops, produces, and markets athletic and sports lifestyle products worldwide. It operates through 13 segments: Western Europe, North America, Greater China, Russia/CIS, Latin America, Japan, Middle East, South Korea, Southeast Asia/Pacifc, TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic, and other centrally managed businesses. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany. Employing more than 60,000 people in over 160 countries, the company produce more than 840 million product units annually and generated sales of €19 billion in 2016. Guggenheim Securities LLC acted as exclusive financial advisor to adidas AG and Sheppard, Mullin, Richter & Hampton LLP served as legal counsel. Going forward, Adidas intends to focus its efforts in this market segment on further strengthening its position as a leading provider of innovative golf footwear and apparel through the Adidas Golf brand, the company says. TaylorMade Golf Company In the spring of 1979 a golf equipment salesman named Gary Adams took out a $24,000 loan on his home and founded the TaylorMade Golf Company. He rented a 6,000 square-foot building that at one time housed a television assembly plant. Counting him, there were three employees and a single, innovative product: a 12-degree driver cast of stainless steel. This new metalwood looked and sounded different from a wooden wood, and most important, it performed differently. The clubhead’s perimeter-weighting offered greater forgiveness on mis-hits, while the lower center of gravity made it easier to launch the ball in the air. Adams, the son of a golf professional, was adamant that TaylorMade clubs maintain ties to what true golfers perceived an authentic golf club should look and feel like. They were committed to combining innovation with authenticity, to always be passionate about the game, and pledged to be competitive – to work hard to establish itself and grow. These four tenets would take them far. The same values singled out 30 years ago by Gary Adams are still revered and practiced today at TaylorMade, adidas Golf and Ashworth. Starting with $47,000 in sales in 1979, the company eventually reached its first billion dollars in revenue in 2006, marking only the second time in history that a golf brand had achieved this milestone. TaylorMade was independently owned until 1984, when Salomon SA acquired the company. At the time, the union was strategically compatible for both companies which were innovators in their industries: Salomon wanted to diversify and made the decision to enter a “three-season” market, and TaylorMade benefited from the worldwide resources of Salomon. Adidas bought Salomon in 1997, and shortly thereafter the image and focus of TaylorMade were redirected to take over the driver market. The company succeeded in achieving this goal in late 2005, when it officially became the top driver in golf. PGA Tour Professionals are said to play more TaylorMade drivers than Callaway, Cleveland, Cobra, Nike and Ping combined. Currently, the company markets TaylorMade drivers, fairway woods, hybrids, irons, wedges, golf balls and accessories. The company’s major equipment claims, promoted in marketing materials with small “No. 1” shields, include: No. 1 Driver in Golf, No. 1 Fairway in Golf and No. 1 Irons in Golf.]]>

Germany's Lanxess $LXS to Acquire Chempura $CHMT Flame Retardant for $2.7B

Germany's Lanxess $LXS to Acquire Chempura $CHMT Flame Retardant for $2.7B

In April, Lanxess agreed to acquire the Clean and Disinfect business of US-based chemical company Chemours (NYSE: CC), for $230 million in cash. Chemours was created in 2015 as a spinoff from the DuPont (NYSE: DD) Performance Chemicals businesses. Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. The company reported sales of $1.7 billion in 2015, with 45 percent of its revenue generated in North America. In addition to additives, Chemtura’s portfolio includes urethanes and organometallics. “With this acquisition, we are forming a champion in the field of additives and are strengthening our already profitable portfolio,” said Matthias Zachert, chairman of Lanxess. “Through the acquisition, we are further implementing our strategy to become a more resilient and profitable chemical company. We are significantly building on our competitive positioning in medium-sized markets and increasing our presence in North America. Lanxess is taking a next and major step forward on its growth path.” Lanxess, based in Stuttgart, Germany, reported sales of €7.9 billion in 2015, with 16,700 employees in 29 countries, and 55 production sites worldwide. The company’s core business is the development, manufacturing and marketing of chemical intermediates, specialty chemicals and plastics. Through Arlanxeo, a joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber. Lanxess was spun off by Bayer AG in 2005. “The transaction provides premium value to our shareholders and benefits our customers and employees by making Chemtura part of a much larger, stronger global enterprise with the resources to fully support a more diverse suite of specialty chemicals products and services,” said Craig A. Rogerson, president, chief executive and chairman of Chemtura. The acquisition will be financed through senior and hybrid bonds, as well as from existing liquidity. The deal is expected to close around mid-2017, subject to approval by Chemtura shareholders, regulatory approvals and other customary closing conditions. Morgan Stanley & Co.  acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Chemtura.]]>

Steinhoff $SNH Raises Bid to Acquire @Poundland in Revised £610M Deal

Steinhoff $SNH Raises Bid to Acquire @Poundland in Revised £610M Deal

its previous offer valued at £597 million, giving Steinhoff more than 900 shops in Britain, Ireland and Spain. Steinhoff already owns the high street brands Harveys Furniture, Bensons for Beds, Sleepmaster, Cargo, and Pep&Co in the UK. The offer price of 227 pence represents a premium of approximately 43.4% to Poundland’s closing price of 158.25 pence on June 13, 2016. The move comes only a few days after Steinhoff agreed to acquire Mattress Firm Holding Corp. (NASDAQ: MFRM), the largest US mattress retailer, for $2.4 billion. “The Poundland Directors, who have been so advised by J.P. Morgan Cazenove and Rothschild as to the financial terms of the Offer, consider the revised and final terms of the Offer to be fair and reasonable,” Steinhoff said in a statement, adding that “the Poundland Directors intend to recommend unanimously that Poundland Shareholders vote in favor” of the deal. “The Poundland Board is pleased to recommend SEAG’s increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price and on an enhanced premium to Poundland’s undisturbed share price,” said Poundland chairman Darren Shapland. “By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction,” commented Steinhoff CEO Markus Jooste. On July 14, Elliott Capital Advisors, the UK arm of US hedge fund activist investor Elliott Management, reported a 13.2% stake in Poundland, putting pressure on Steinhoff to increase its previous offer. Elliot’s stake is said to be controlled via contracts for difference (CFD). A CFD is an agreement between two parties – the investor and the CFD provider – to pay each other the change in the price of an underlying asset, in this case Poundland shares. “Analysts say that Elliott is engaging in ‘bumpitrage,’ where an activist investor wrestles control following a takeover offer in the hope of squeezing out better terms,” according to the Financial Times. Elliott Management has more than $27 billion of assets under management. Its flagship hedge fund Elliott Associates LP was founded in 1977 by billionaire Paul Singer. The firm has offices in New York, London, Hong Kong and Tokyo. Poundland conducted its IPO on the London Stock Exchange at 300 pence a share in March 2014. “Its shares have plunged in value over the past year due to poor trading, competition from discounters such as Aldi and Lidl and its £55 million takeover of 99p Stores, which was delayed by a competition inquiry,” said The Guardian. “During the six-month investigation by the regulator, 99p Stores lost its credit insurance, which meant the retailer was cut off by many suppliers, leaving it with empty shelves and resulting in the departure of 1,000 staff,” the British newspaper added. In 2011, Steinhoff acquired Conforama, Europe’s second largest retailer of home furnishings, with over 200 stores in France, Spain, Switzerland, Portugal, Luxembourg, Italy and Croatia. In 2015, South African low-end retail investment and holding company Pepkor became a member of the Steinhoff group. Steinhoff International is a South African-based integrated retailer that manufactures, sources and retails furniture, household goods and general merchandise in Europe, Australasia and Africa. Steinhoff was founded in 1964 by Bruno Steinhoff in Westerstede, Germany and moved its headquarters to South Africa in 1998. It went public on the Johannesburg Stock Exchange. In December 2015, Steinhoff moved its primary listing to the Frankfurt Stock Exchange and founded a new Dutch holding company based in Amsterdam, while its management remained in South Africa. Investec Bank plc is acting as financial adviser to Steinhoff. J.P. Morgan Cazenove is acting as joint financial adviser and corporate broker to Poundland. Rothschild is acting as joint financial adviser to Poundland. Shore Capital is acting as corporate broker to Poundland in this transaction. Linklaters LLP are providing legal advice to Steinhoff. Freshfields Bruckhaus Deringer LLP are providing legal advice to Poundland.]]>

Steinhoff $SNH Raises Bid to Acquire @Poundland in Revised £610M Deal

Steinhoff $SNH to Acquire @Poundland in £597 Deal, Elliott Shows 13% $PLND Stake

Reuters said. The offer price of 222 pence represents a premium of approximately 40.3% to Poundland’s closing price of 158.25 pence on June 13, 2016. On July 14, Elliott Capital Advisors, the UK arm of US hedge fund activist investor Elliott Management, reported a 13.2% stake in Poundland, suggesting that Steinhoff may be facing pressure to increase its £597 million offer. Elliot’s stake is said to be controlled via contracts for difference (CFD). A CFD is an agreement between two parties – the investor and the CFD provider – to pay each other the change in the price of an underlying asset, in this case Poundland shares. Elliott Management has more than $27 billion of assets under management. Its flagship hedge fund Elliott Associates LP was founded in 1977 by billionaire Paul Singer. The firm has offices in New York, London, Hong Kong and Tokyo. Elliott has been actively amassing multiple significant company stakes urging its targets to seek lucrative exit strategies, including cyber security firm Imperva (NYSE: IMPV), founded in 2002 by a team of prominent Israeli high-tech entrepreneurs; Polycom (NASDAQ: PLCM), which private equity firm Siris Capital Group LLC  agreed to acquire last week in a deal valued at $2 billion; Canada’s Mitel Networks (NASDAQ: MITL; TSX: MNW) which had previously offered to acquire Polycom; and Symantec (NASDAQ: SYMC), which agreed to acquire Blue Coat for $4.65 billion last month. Elliot had also bought a large stake in Qlik Technologies (NASDAQ: QLIK)(QLIK), a visual analytics company, which private equity firm Thoma Bravo LLC agreed to acquire for $3 billion in early June. Poundland conducted its IPO on the London Stock Exchange at 300 pence a share in March 2014. “Its shares have plunged in value over the past year due to poor trading, competition from discounters such as Aldi and Lidl and its £55 million takeover of 99p Stores, which was delayed by a competition inquiry,” said The Guardian. “During the six-month investigation by the regulator, 99p Stores lost its credit insurance, which meant the retailer was cut off by many suppliers, leaving it with empty shelves and resulting in the departure of 1,000 staff,” the British newspaper added. In 2011, Steinhoff acquired Conforama, Europe’s second largest retailer of home furnishings, with over 200 stores in France, Spain, Switzerland, Portugal, Luxembourg, Italy and Croatia. In 2015, South African low-end retail investment and holding company Pepkor became a member of the Steinhoff group. Steinhoff International is a South African-based integrated retailer that manufactures, sources and retails furniture, household goods and general merchandise in Europe, Australasia and Africa. Steinhoff was founded in 1964 by Bruno Steinhoff in Westerstede, Germany and moved its headquarters to South Africa in 1998. It went public on the Johannesburg Stock Exchange. In December 2015, Steinhoff moved its primary listing to the Frankfurt Stock Exchange and founded a new Dutch holding company based in Amsterdam, while its management remained in South Africa.]]>

Adidas to Sell TaylorMade, Adams Golf and Ashworth to KPS for $425M

Adidas $ADS Actively Seeking Buyer for TaylorMade Golf and Other Golf Brands

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. It operates through 13 segments: Western Europe, North America, Greater China, Russia/CIS, Latin America, Japan, Middle East, South Korea, Southeast Asia/Pacifc, TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic, and Other centrally managed businesses. As of December 31, 2015, the company operated 2,772 stores, including 1,484 stores under the adidas brand; 366 stores under the Reebok brand; and 872 factory outlets. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany. TaylorMade Golf Company In the spring of 1979 a golf equipment salesman named Gary Adams took out a $24,000 loan on his home and founded the TaylorMade Golf Company. He rented a 6,000 square-foot building that at one time housed a television assembly plant. Counting him, there were three employees and a single, innovative product: a 12-degree driver cast of stainless steel. This new metalwood looked and sounded different from a wooden wood, and most important, it performed differently. The clubhead’s perimeter-weighting offered greater forgiveness on mis-hits, while the lower center of gravity made it easier to launch the ball in the air. Adams, the son of a golf professional, was adamant that TaylorMade clubs maintain ties to what true golfers perceived an authentic golf club should look and feel like. They were committed to combining innovation with authenticity, to always be passionate about the game, and pledged to be competitive – to work hard to establish itself and grow. These four tenets would take them far. The same values singled out 30 years ago by Gary Adams are still revered and practiced today at TaylorMade, adidas Golf and Ashworth. Starting with $47,000 in sales in 1979, the company eventually reached its first billion dollars in revenue in 2006, marking only the second time in history that a golf brand had achieved this milestone. TaylorMade was independently owned until 1984, when Salomon SA acquired the company. At the time, the union was strategically compatible for both companies which were innovators in their industries: Salomon wanted to diversify and made the decision to enter a “three-season” market, and TaylorMade benefited from the worldwide resources of Salomon. Adidas bought Salomon in 1997, and shortly thereafter the image and focus of TaylorMade were redirected to take over the driver market. The company succeeded in achieving this goal in late 2005, when it officially became the top driver in golf. PGA Tour Professionals are said to play more TaylorMade drivers than Callaway, Cleveland, Cobra, Nike and Ping combined. Currently, the company markets TaylorMade drivers, fairway woods, hybrids, irons, wedges, golf balls and accessories. The company’s major equipment claims, promoted in marketing materials with small “No. 1” shields, include: No. 1 Driver in Golf, No. 1 Fairway in Golf and No. 1 Irons in Golf.]]>