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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.]]>

Mandarinfish Group to Acquire PADI Scuba Diving Organization from Providence for $700M+

Mandarinfish Group to Acquire PADI Scuba Diving Organization from Providence for $700M+

Providence Equity Partners, for more than $700 million, The Wall Street Journal reported. PADI was founded near Chicago in 1966 by the late scuba equipment salesman John Cronin, and late educator and swimming instructor Ralph Erickson. They felt that the scuba certification agencies that existed at the time were unprofessional, didn’t use state-of-the-art instruction, and made it unnecessarily difficult for people to enter the sport. PADI diver courses and scuba diving services can now be found in more than 183 countries and territories. PADI Worldwide has grown over the course of five decades to become international in scope with service offices and distribution centers in Australia, Brazil, Canada, Japan, Russia, the United Kingdom and the United States. With more than 6,400 PADI dive centers and resorts, and more than 133,000 individual PADI professionals who have issued more than 25 million certifications around the world, Providence, which bought a majority stake in PADI from private equity firm Lincolnshire Management in 2015, has focused on expanding the company in Asia, including in Indonesia and Malaysia, according to Bloomberg. Deutsche Bank AG reportedly acted as financial advisor to Providence in the deal. Providence has $50 billion in assets under management across complementary private equity and credit businesses. Since the firm’s inception in 1989, the firm has invested in over 160 companies and become a leading equity investment firm focused on media, communications, education and information sectors. The firm is headquartered in Providence, Rhode Island and also has offices in New York, London, Hong Kong, Singapore and New Delhi.]]>

Shahid Khan Buys Four Seasons @FSToronto from Prince Alwaleed for $171M

Shahid Khan Buys Four Seasons @FSToronto from Prince Alwaleed for $171M

Four Seasons Hotel Toronto[/caption] At the end of September 2016, Khan’s net worth was estimated at $6.9 billion by Forbes, which featured him on the magazine’s front cover in 2012. He is the richest person of Pakistan. A naturalized U.S. citizen, Shahid Khan arrived from Pakistan in 1967 at age 16 to study at the University of Illinois. With a B.S. in industrial engineering in 1971, he became Flex-N-Gate’s engineering manager. In 1978, Khan left and with $13,000 in savings and $50,000 from the Small Business Loan Corporation, he created the start-up Bumper Works, which revolutionized the industry through an innovative one-piece bumper design that remains the industry standard. Khan eventually returned to buy Urbana, Illinois-based Flex-N-Gate, which was ranked in 2015 by Automotive News as the 10th-largest original equipment supplier in North America and the 38th largest supplier in the world. Flex-N-Gate employs more than 18,750 people at 55 manufacturing facilities and nine product development and engineering facilities. He acquired the Jacksonville Jaguars from Wayne Weaver in 2012, and the Fulham Football Club from Mohamed Al Fayed in 2013. Khan’s purchase of the Four Seasons Hotel Toronto deepens his business roots in Canada, where Flex-N-Gate operates 11 plants in Ontario. Photo: Shahid Khan, owner of Four Seasons Hotel Toronto, Flex-N-Gate, Jacksonville Jaguars and Fulham Football Club.]]>