Titleist Acquired by Fila Korea Ltd. and Mirae Asset Private Equity for $1.2B

[Deryck Griffith]

It'll be interesting to see if Fila starts developing a more extensive golf clothing line?

I know a lot of the Titleist staffers grab their own clothing lines like BOSS, etc but with Fila, would they spend the money to outfit Titleist staffers with Fila Golf gear?

Fila Golf Catalogue

http://www.filagolf.com/Ressources/en/2011%20Fila%20Golf%20Catalog.pdf

Should be interesting...

[sean_miller]

Looks good  - really good (wink wink nudge nudge).

[Stretch]

Originally Posted by sean_miller

Looks good  - really good (wink wink nudge nudge).

Two collars. For when one shiny white belt just isn't enough douche .

[Deryck Griffith]

Originally Posted by Stretch

Two collars. For when one shiny white belt just isn't enough douche.

Priceless!!

[sean_miller]

I skimmed the catalogure and never even noticed they sold men's clothing. I was referring to the brunette.

If Rickie Fowler was wearing double popped collars while using a Tour Striker incorporating a little S&T; I'm sure every one here would be sporting the look. Just sayin'.

[ND Fan]

We'll have to wait and see.

Footjoy's last great move was producing shoes in China instead of Massachusetts.  The Icon is a poor quality substitute in comparison to the old FJ Classics.

Selling off our greatest companies does not sound good for America in the long term.  Yes it's just one but how many more can we stand to lose?  When does Titleist relocate to Korea?  It will most likely happen eventually.

[Deryck Griffith]

Originally Posted by sean_miller

I skimmed the catalogure and never even noticed they sold men's clothing. I was referring to the brunette.

If Rickie Fowler was wearing double popped collars while using a Tour Striker incorporating a little S&T; I'm sure every one here would be sporting the look. Just sayin'.

I was with you regarding the Brunette in the catalogue.  She is HOT!!!!

[iacas]

Originally Posted by Stretch

Two collars. For when one shiny white belt just isn't enough douche.

The photographer's white balance is off slightly. That belt is very slightly pink. :-)

They may very well keep the FootJoy clothing name but just use Fila's manufacturing to make everything. No? FootJoy does well with shoes and rain gear, after all. Pants and shirts not so much.

[motteler621]

If Fila is going to become popular in golf clothes they need to change their name and trademark or something. I just cant associate Fila with good looking golf wear, when I was growing up all the gangsters and ghetto people would wear fila.

If you take a nice shirt and throw that Fila mark on it, it turns ugly automatically.

[Deryck Griffith]

Originally Posted by iacas

The photographer's white balance is off slightly. That belt is very slightly pink. :-)

They may very well keep the FootJoy clothing name but just use Fila's manufacturing to make everything. No? FootJoy does well with shoes and rain gear, after all. Pants and shirts not so much.

The pants and golf shirts specifically is what I was referencing to regarding Fila's potential push to sell golf gear and dress Titleist staffers.

I could easily see a scenario where a Titleist staffer wearing his/her Fila golf shirt puts on his FJ rain jacket in a rain situation.

Then again, there is a chance where the majority of Titleist staffers reject to wear Fila?  Who knows but money talks and I'm sure some would bite the bullet if Fila paid a player high enough to wear their gear on tour.

[jamo]

I believe even before the purchase I had heard some things about FJ preparing to ramp up their clothing production. It will be interesting to see where this takes that.

[B-Con]

[url=http://www.golf.com/golf/tours_news/article/0,28136,2072861,00.html?eref=golf]In this article[/url] it's mentioned that the buying price of Acushnet was 1.2 billion. Revenue for Acushnet last year was 1.2 billion minus $80 million in operation expenses. If I'm reading that right, were they basically sold for the profit they generate in a year? Who makes that kind of deal?

[newtogolf]

2010 Revenue exceeds $1.2 billion, thats total sales, not profit.  Their Operating income was $80 million.   Those numbers on their own don't justify the sale price, as operating income is quite low compared to revenue meaning there is likely a lot of debt, overhead and expenses tied to that revenue.  Fila must have seen value in patents, and the ability to increase operating income significantly as the current income would result in a 15 year payback which is abnormally long for such an acquisition.

Originally Posted by B-Con

In this article it's mentioned that the buying price of Acushnet was 1.2 billion. Revenue for Acushnet last year was 1.2 billion minus $80 million in operation expenses. If I'm reading that right, were they basically sold for the profit they generate in a year? Who makes that kind of deal?

[Stretch]

Originally Posted by newtogolf

2010 Revenue exceeds $1.2 billion, thats total sales, not profit.  Their Operating income was $80 million.   Those numbers on their own don't justify the sale price, as operating income is quite low compared to revenue meaning there is likely a lot of debt, overhead and expenses tied to that revenue.  Fila must have seen value in patents, and the ability to increase operating income significantly as the current income would result in a 15 year payback which is abnormally long for such an acquisition.

Buyout firms focus primarily on EBITDA (earnings before interest, taxes, depreciation and amortization) when pricing a deal. On that basis, Mirae etc. paid 10.5x for Acushnet, which is definitely on the rich side considering current market conditions. I know for certain that several US private equity funds were chasing the deal hard, too, but none of them could make the numbers work at that kind of multiple. Mirae must be betting on massive growth in the game in their own backyard in Asia to have any expectation of seeing a decent return on the investment.

[newtogolf]

You're right, I was too lazy to look up their EBITDA, and just based my points on the information in the attached article.  As you said 10.5x is still rich, usually 5x is max, but there must be some buried profit or large one-time expenses that caused the EBITDA to be low last year that they were able to make the numbers work for them.

Originally Posted by Stretch

Buyout firms focus primarily on EBITDA (earnings before interest, taxes, depreciation and amortization) when pricing a deal. On that basis, Mirae etc. paid 10.5x for Acushnet, which is definitely on the rich side considering current market conditions. I know for certain that several US private equity funds were chasing the deal hard, too, but none of them could make the numbers work at that kind of multiple. Mirae must be betting on massive growth in the game in their own backyard in Asia to have any expectation of seeing a decent return on the investment.

[Drew Chung]

http://www.latimes.com/business/la-fiw-0521-fortune-golf-20110520,0,171257.story

[MiniBlueDragon]

I take it you didn't use the "search" before posting? This was posted almost 2 weeks ago...

http://thesandtrap.com/forum/thread/46767/titleist-acquired-by-fila-korea-ltd-and-mirae-asset-private-equity-for-1-2b

[Drew Chung]

yea my bad...new here. should've spent some time in the forums before posting. am right now and a lot of good stuff in here.