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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.]]>

Schorsch AR Capital's AFIN to Merge With Affiliate RCA REIT in $1.4B Deal

Schorsch AR Capital's AFIN to Merge With Affiliate RCA REIT in $1.4B Deal

American Finance Trust Inc. (AFIN) and American Realty Capital – Retail Centers of America Inc. (RCA), both publicly registered, non-traded real estate investment trusts (REITs) controlled by real estate powerhouse AR Capital, also known as AR Global, co-founded and led by Nicholas S. Schorsch and William M. Kahane, said they agreed to merge. The deal is valued at $1.4 billion, payable in a combination of AFIN common shares and cash, plus the assumption of certain debt. The scandal-plagued real estate group has been seeking an exit, including a sale or consolidation of over half a dozen of its REITs since last year. RCA is a REIT focused on the acquisition of core retail properties, with an emphasis on multi-tenant power and lifestyle centers across the United States. AFIN is a REIT focused on acquiring a diversified portfolio of commercial properties, with an emphasis on single tenant buildings with net-leases across the United States. The deal is said to create a diversified REIT with a retail focus, with an enterprise value of $3.9 billion. It would own 494 properties, comprising 20.8 million rentable square feet of single-tenant net lease, power center, and lifestyle center assets, and would increase RCA’s weighted average remaining lease term from 5.3 years to 8.0 years for the combined company.

“We are pleased to announce today’s transaction which will bring together two high quality real estate portfolios and will create a best-in-class diversified REIT with a retail focus.”

Michael Weil, Chief Executive Officer of AR Capital/AR Global, AFIN, and RCA.

Last month, another AR Capital affiliate, New York REIT Inc. (NYSE: NYRT), cancelled a previously announced merger with The JGB Companies to create an $8.4 billion NYC-DC REIT colossus. NYRT said it will sell off its individual assets and distribute the proceeds to shareholders. The move comes a few months after affiliates American Realty Capital Healthcare Trust III Inc., and Healthcare Trust Inc., formerly operating as American Realty Capital Healthcare Trust II Inc., also started seeking strategic alternatives, including a sale, in the midst of a crowded field of REITs being put up for sale and exploring strategic options. Other competing REITs recently being shopped include American Farmland Company (NYSE MKT: AFCO), AdCare Health Systems Inc. (NYSE MKT: ADK), KBS Legacy Partners Apartment REIT (non-traded), KBS Strategic Opportunity REIT (non-traded), Stratus Properties Inc. (NASDAQ: STRS), and InvenTrust Properties Corp. (non-traded, formerly Inland American), which announced the spin-off of its Highlands REIT Inc. earlier this year.
Both AFIN and RCA are advised and directly or indirectly owned and controlled by AR Capital LLC, AR Global, and AR Global Investments LLC (the successor business to AR Capital LLC, operating as AR Global), all of which, in addition to NYRT and the Healthcare Trusts, share certain executive officers and directors, as well as the same office space at 405 Park Avenue in Manhattan.
AR Capital, formerly operating as American Realty Capital, was co-founded in 2006 by Nicholas S. Schorsch and William M. Kahane. AR Global Investments LLC operates as a subsidiary of AR Capital LLC, a full service investment management firm providing advisory services to retail and institutional investors. AR Capital’s AR Global is one of the largest alternative asset managers in the world, with over $18 billion of real estate and loans under management. AR Global’s investment programs include net leased properties in the U.S. and Europe, and domestic strategies focused on healthcare real estate, hotels, retail shopping centers, and New York City office buildings, as well as both real estate loans and corporate credit. On November 9, 2015, private equity giant Apollo Global Management, LLC (NYSE: APO) and AR Capital, LLC announced that they have mutually agreed to terminate a planned transaction pursuant to which Apollo would have purchased for $378 million a controlling interest in newly formed AR Global Investments LLC, owning a majority of AR Capital’s asset management business. A week later, on November 16, 2015, AR Capital announced the suspension and acceptance of new subscriptions to certain of its current investment programs effective December 31, 2015, “as a result of regulatory and market uncertainty.” “Until there is greater clarity, we have decided to sit this one out,” said Kahane at the time, adding, “we do not intend to register any new product offerings nor pursue any of our existing offerings after December 31, 2015. Naturally, as the government’s position becomes clearer, we may reconsider our present posture on these issues.” AR Capital’s decision came within days after the state of Massachusetts charged Realty Capital Securities (RCS) with fraudulently securing proxy votes to support real estate deals sponsored by AR Capital, which is owned by Schorsch and Kahane.]]>

Electra, Alchemy Hire Rothschild to Exit £1B British #1 RV Camp Operator Parkdean

Electra, Alchemy Hire Rothschild to Exit £1B British #1 RV Camp Operator Parkdean

The Telegraph. The British pound has tanked by 12% against the dollar and by 11% against the euro since the referendum result. In a separate move, Rothschild & Co, the French arm of the banking dynasty, recently agreed to buy Marseille-based wealth management business Compagnie Financiere Martin Maurel for £190 million, creating a private bank with combined assets under management of £27 billion.  Baron David de Rothschild, the bank’s chairman, said: “Our two companies share an independent family model that is a real strength when compared to our competitors.” Parkdean Resorts has seen bookings rise 11 percent after it invested millions on upgrading its sites. The company reportedly invested £36 million in 2015 and is said to be channeling a further £40 million into the business this year, according to the Daily Mail. It is bringing in 400 new and upgraded caravans and lodges, offering double glazing and central heating. The company’s revenues jumped from £371 million in 2014 to £401 million last year, while underlying earnings increased by 16pc to £106.6 million, The Telegraph said. “We have done very well on holiday bookings this year, which have continued to build on last year,” Parkdean chief executive John Waterworth said. “That’s partly due to changing the product mix and putting in better accommodation, and partly due to expanding the number of holiday hire units within existing parks.” “There has been a trend for shorter breaks that has been going on for the last 25 years,” he commented further. “A foreign holiday does not appeal to everybody – some people want a short break where substantial travel is not involved. What we have seen is growth in the popularity of UK short breaks from the domestic market. It has been building very gradually and it continues to build.” A trend for taking shorter breaks instead of longer holidays lengthened the holiday season and boosted Parkdean Resorts’ performance, with the company selling 492,000 holidays in 2015, it said. “Parkdean Resorts is confident of another successful year of growth, with holiday sales for the year 9% ahead of 2015,” Waterworth recently said, according to the Chronicle. “The group has been acquisitive since its formation and we see further opportunities in this highly fragmented sector via both single parks and multi-site portfolios.” Less than a month ago, Parkdean Resorts acquired the five-star Vauxhall Holiday Park resort in Great Yarmouth, in its first acquisition since last year’s merger. Vauxhall comprises 390 caravans and lodges, 48 apartments and 180 touring and camping pitches across 41 acres. Electra Private Equity PLC is a London Stock Exchange listed investment trust focused on buyouts and co-investments, secondaries, debt investments, listed securities and funds. The firm was formed in 1935 as Cables Investment Trust Limited by Cable & Wireless and Globe Investment Trust, and renamed as Electra in 1975. At March 31, 2016, Electra’s investment portfolio was valued at £1.7 billion. Alchemy specializes in investing in distressed and undervalued or underperforming businesses and other special situations through debt and equity across Europe. The firm currently has over £1.5 billion of assets under management. Rival Caledonia Investments Ends Efforts to Sell Park Holidays Electra’s and Alchemy’s contrarian Parkdean Resorts move comes a week after rival private equity firm Caledonia Investments plc (LSE: CLDN) reportedly ended its own efforts to sell caravan park operator Park Holidays following Brexit, Britain’s decision to quit the European Union. Caledonia’s Park Holidays performance is said to have been buoyed by a rise in so called “staycations” among Britons. According to data from VisitEngland, £1.9 billion was spent on holiday parks and caravan trips in 2015. Caledonia’s thinking being that “earnings will rise much faster because Brexit means that more and more people will opt for staycations. They’ll be put off from going abroad because of the collapse in sterling and terror attacks across Europe,” a person familiar with the matter told the British Press Association. In May, Caledonia had put RV caravan park operator Park Holidays up for sale, at an expected valuation in excess of £250 million, and has reportedly hired PwC as its financial advisor. In 2013, Caledonia acquired Park Holidays for £172 million. In a separate recent deal, Caledonia acquired Gala Bingo, the UK market leading retail bingo operation, from Gala Coral, for £241 million. With 25 holiday parks in the South of England stretching from Devon in the west to Suffolk in the east, Park Holidays says is the largest operator of parks in the south of England. Caledonia is a self-managed investment trust company with net assets of £1.6bn. Its heritage can be traced back to the shipping empire established by Sir Charles Cayzer in 1878. Caledonia continues to enjoy the backing the Cayzer family in its fifth generation, who own 48.5% of its share capital. The company, formerly known as the Foreign Railways Investment Trust Ltd, was incorporated in 1928. It was acquired by the Cayzer family in 1951 to hold their diverse interests and was renamed Caledonia Investments Ltd. In 1955 Caledonia acquired the Cayzer family’s interest in the British & Commonwealth Shipping Co. Ltd, formed out of the merger of Clan Line Steamers, the world’s largest cargo carrying line, founded by Sir by Charles Cayzer in 1881, and the iconic Union-Castle Line. In 1960 the company was listed on the London Stock Exchange and in 1981 it was renamed Caledonia Investments PLC. After its holding in British & Commonwealth was sold in 1987, Caledonia Investments became a diversified trading and investment company, which in turn was converted into a UK Investment trust company in 2003.]]>

Sporting Goods Retailer @Cabelas $CAB Actively Exploring Exit Strategies

Sporting Goods Retailer @Cabelas $CAB Actively Exploring Exit Strategies

Omaha World Herald. Seattle-based Nordstrom was the only other retailer that operated a bank until last year, when it sold its $2.2 billion credit-card portfolio to TD Bank. Several banks have reportedly expressed a possible interest in Cabela’s $5 billion credit-card portfolio. Cabela’s, the World’s Foremost Outfitter of hunting, fishing and outdoor gear, was born in 1961 when Dick Cabela came up with the idea of selling fishing flies. From modest beginnings he operated the business with his wife and brother, taking it public in 2004, when it reached $1.5 billion in sales. Dick Cabella died in 2014, after growing the company to over $3 Billion in annual sales. “Few, if any, businesses today survive the kitchen-table dreams of their founders, especially in the outdoor industry where businesses come and go with the changing seasons,” says the company. “Yet, the leader in the outdoor equipment business has done just that – survived, grown and prospered from simple beginnings to become the largest mail-order, retail and Internet outdoor outfitter in the world.” Cabela’s Inc. is a direct marketer and specialty retailer of hunting, fishing, boating, camping, shooting, and related outdoor recreation merchandise. Cabela’s main world headquarters building along Interstate 80 in Sidney, Nebraska encompasses more than 250,000 square feet. The foundation of the company is its world-famous catalog business. The company produces nearly 100 different catalogs per year, including specialty books focusing on such outdoor pursuits as archery, fly-fishing and boating, as well as massive Spring and Fall Master catalogs. Internationally known as a source of affordable, high-quality outdoor equipment, Cabela’s catalogs are shipped to all 50 states and 125 countries. Its Internet department is “growing by leaps and bounds,” the company says. In 2006 Cabela’s web site was ranked No. 1 in the outdoor retail industry.]]>

Australia's Top Online Lender @FirstmacLimited For Sale by $GS at A$500M

Australia's Top Online Lender @FirstmacLimited For Sale by $GS at A$500M

Goldman Sachs Asset Management itself is said to be considering exiting its Australian equities business, as reported by ExitHub. Goldman Sachs, which oversees about A$9 billion ($6.6 billion) in Australia, is reviewing options including a sale or a management buyout. Its Australian equities team is led by Dion Hershan in Melbourne. Firstmac, owned by its founder and managing director Kim Cannon, and a premier sponsor of the Brisbane Broncos Rugby League Football Club, has A$8 billion in mortgages under management, with 35 years experience. The company wrote over 84,000 home loans in the past 15 years and made A$250 million in cash investments through offices in Sydney, Melbourne, Brisbane, the Gold Coast and Singapore. The company self-funds its operations through the offering of residential mortgage-backed securities (RMBS). Firstmac has publicly issued over A$16 billion in RMBS bonds since 2003, and is one of the top 10 RMBS issuers in Australia. FirstMac has earned a rating of ‘Strong’ and its outlook has been deemed as ‘Stable’ by Standard & Poor’s, for its ability to service loans. Firstmac’s RMBS issues are mainly secured by mortgages written by its related company loans.com.au, Australia’s biggest online lender. Loans.com.au was founded in 2011, and has grown rapidly. It now reportedly accounts for three-quarters of new Firstmac loans. Mortgages issued by Firstmac and loans.com.au reportedly have a level of arrears of only 0.47%, less than half the industry average of 1.11%. Loans.com.au has no branch network and processes loan applications exclusively online and through its call center, enabling it to offer lower interest rates than the major banks. Loans.com.au has five stars for Outstanding Value from Canstar, and was named the Best of the Best Cheapest Home Loan and Cheapest Flexible Home Loan 2015 by Money magazine. It holds Financial Review Smart Investor’s Blue Ribbon Award for the Best Property Investment Loan – Variable 2015. In late May, Firstmac raised A$500 million through an RMBS issue at a margin of 150 basis points, or 1.50% above the Bank Bill Swap Rate (BBSW). Firstmac’s latest RMBS pricing was similar to recent comparable bank deals, although margins have been moving higher in the RMBS market overall. ING Direct reportedly paid a margin of 146 bps on an RMBS issue in March, and Resimac paid 139 bps in February.]]>