Select Page
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.]]>

Britain's BTG to Acquire Israeli Cryoablation Leader Galil Medical for $85-$110M

Britain's BTG to Acquire Israeli Cryoablation Leader Galil Medical for $85-$110M

BTG plc (LSE: BTG) has agreed to acquire global oncology cryoablation technology leader Galil Medical, headquartered in Minnesota, US and Yokneam, Israel, for $84.5 million (£58.3m), with additional milestone payments up to $25.5 million (£17.6m). Cryotherapy, also referred to as cryosurgery or cryoablation, is a minimally invasive procedure that involves cooling the tip of an ultra-thin needle to extremely low temperatures using compressed argon gas. This forms an iceball, which engulfs the targeted tissue and destroys diseased cells. “I am very pleased to announce that Galil will be joining the BTG family. Our two companies share a passion for patients and a commitment to innovation that will be better served through this acquisition,” said Martin J. Emerson, Galil Medical president and CEO. “This bolt-on acquisition builds on our leadership in Interventional Oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer,” said Louise Makin, BTG’s CEO. “It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted. In addition to enhancing our offering to interventional radiologists, Galil Medical provides access to other specialist physicians that may in future include pulmonary specialists, complementing our existing PneumRx and EKOS businesses. Longer term, we are excited by the opportunity to explore the use of our locoregional radiation and cryoablation therapies alongside other developing technologies.” The acquisition will be funded from BTG’s existing cash resources. BTG expects Galil Medical to be profitable and the transaction to be earnings accretive in the first full year of ownership. The transaction is expected to close before the end of June 2016. Evercore Partners International LLP advised BTG on the transaction. Galil advisors for this transaction include Houlihan Lokey, Fredrikson & Byron, Raved Magriso Benkel & Co (Tel Aviv), Willkie Farr & Gallagher and EY. BTG is a growing international specialist healthcare company bringing to market innovative products in specialist areas of medicine to better serve doctors and their patients. The company a portfolio of interventional medicine products to advance the treatment of liver tumors, advanced emphysema, severe blood clots and varicose veins, and specialty pharmaceuticals that help patients overexposed to certain medications or toxins. The company, formerly known as British Technology Group, was founded in 1981 through the merger of the National Research & Development Council and the National Enterprise Board. The group was privatized in 1991. BTG completed the acquisition of Protherics PLC in 2008 and of Biocompatibles International plc in 2011. In 2015, BTG acquired PneumRx Inc. BTG is based in London, UK. BTG is a constituent of the FTSE 250 Index. Galil Medical was founded in 1997 in Yokneam, known as Israel’s Startup Village, as it boasts the highest concentration of medical research companies in Israel. The high-tech hub is located in a hilly region of the lower Galilee at the base of the Carmel Mountains, overlooking the Jezreel Valley. Yokneam’s proximity to the Technion and the University of Haifa have helped it become a high tech center with annual exports of approximately $5 billion. The company owns, manufactures and sells a portfolio of cryoablation systems and needles. Galil Medical currently employs approximately 100 people globally. It’s corporate headquarters are in Arden Hills, Minnesota, and  its R&D headquarters are in Yokneam, Israel. In the US, Galil Medical’s products are indicated for the treatment and palliative care of kidney and other cancers, in addition to a number of other uses, including in urology. Galil Medical is also conducting two clinical studies, both nearing completion, that could lead to US regulatory clearance for use in lung metastases and bone metastases. Galil Medical sells in the US through distributors and its own specialist sales force, and through distributors outside the US. Global revenues were approximately $22m in 2015, of which US revenues were approximately $15m. Global revenues from non-urology sources, principally interventional radiologists treating kidney cancer, have shown a 39% CAGR over the last six years and constituted ~$15m of revenue in 2015. Galil Medical reported gross assets of $14.1m and a loss before tax of $8.5m in 2015. In 2003, Galil Medical, at the time a subsidiary of Israeli multinational high-tech holding company Elron Electronic Industries Ltd (NASDAQ:ELRN), established Oncura, a global urology sales and marketing joint venture with UK-based Amersham (LSE, NYSE, OSE: AHM). Amersham contributed its brachytherapy radiation oncology call point, while Galil Medical contributed its urology call point to Oncura, with Amerhsam holding a 75% stake and Galil keeping a 25% stake. Amersham in turn was acquired by GE Medical. The major Israeli shareholders of Galil, in addition to Elron, were RDC Rafael Development Corporation Ltd. and Discount Investment Corporation Ltd (TASE: DISI). In 2006, Galil Medical raised $52 million in growth equity funding from Thomas, McNerney & Partners, The Vertical Group, and Investor Growth Capital. Galil then bought back the sales and marketing assets of Oncura. In October 2015 Galil Medical announced it had agreed to acquire Perseon Corp. (NASDAQ: PRSN), a leader in the field of microwave ablation, in an all cash transaction valued at $10.6 million, but the transaction failed to close. On January 12, 2016, Perseon’s shares were delisted from Nasdaq “after a failure to comply with annual meeting rules.” Photo: Startup Village – Yokneam.]]>

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.]]>

China's Anbang to Acquire Blackstone's Strategic Hotels & Resorts for $6.5B

China's Anbang to Acquire Blackstone's Strategic Hotels & Resorts for $6.5B

Blackstone’s Real Estate Partner VIII fund closed its acquisition and privatization of the Strategic Hotels (NYSE:BEE) REIT in an all-cash transaction valued at approximately $6 billion. “The price is about $450 million more than Blackstone paid for Strategic in December,” said Bloomberg reporter Hui-Yong Yu. “The New York-based private equity firm had been planning to sell individual properties in the portfolio before Anbang made a pre-emptive offer for the entire company.” [caption id="attachment_430444" align="alignleft" width="1024"]Anbang Chairman Wu Xiaohui with Blackstone Chairman Stephen Schwarzman, at Harvard China Forum Anbang Chairman Wu Xiaohui with Blackstone Chairman Stephen Schwarzman, at Harvard China Forum presentation on “Strategic Partnerships with China: Blackstone & Anbang.” Feb. 10, 2015[/caption] The deal illustrates corporate China’s expansion abroad, and would rank as the largest U.S. real estate purchase by a buyer from mainland China, according to data compiled by Bloomberg. Last year Beijing-based Anbang purchased New York’s Waldorf Astoria from Hilton Worldwide Holdings (NYSE: HLT) for $1.95 billion, one of the highest prices per room ever paid for a U.S. hotel. Strategic Hotels & Resorts is an owner and asset manager of the highest quality portfolio of upper-upscale and luxury hotels and resorts. Its current portfolio of 16 hotels and resorts are found in desirable and high-barrier-to-entry urban and resort markets in the United States. They include 7,532 rooms, 807,000 square feet of multi-purpose meeting and banqueting space, and feature multiple revenue streams, such as world-class restaurants, unique wine and cocktail bars, high-end spas and desirable retail offerings. Strategic Hotels’ resort properties include the Fairmont and Four Seasons Resort in Scottsdale, Arizona, Four Seasons Resort in Jackson Hole, Wyoming, Del Coronado in San Diego, the Loews Santa Monica Beach, Montage Laguna Beach, Ritz-Carlton Half Moon Bay and Ritz-Carlton, Laguna Niguel in California. Strategic’s urban properties include the Fairmont and Intercontinental Chicago, Four Seasons Hotel in Austin, Texas, Four Seasons Hotel in Silicon Valley, Four Seasons Hotel in Washington, D.C., Intercontinental in Miami, JW Marriott Essex House in New York and The Westin St. Francis in San Francisco. At the time of its acquisition by Blackstone, Strategic Hotels owned interests in 17 properties with an aggregate of 7,921 rooms and 847,000 square feet of multi-purpose meeting and banqueting space. Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $92 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major investments include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust (BXMT).]]>