Interesting News: ACUSHNET COMPANY ANNOUNCES AGREEMENT TO SELL COBRA GOLF TO PUMA

[Boyder]

Just found this to be interesting news - I always like to see how changes like this shake out in the sports industry.

ACUSHNET COMPANY ANNOUNCES AGREEMENT TO SELL COBRA GOLF TO PUMA

Fairhaven, MA (March 10, 2010) - Acushnet Company, the golf business of Fortune Brands, Inc. (NYSE: FO), announced today that it has signed an agreement for the sale of Cobra Golf to PUMA AG. The sale includes the Cobra brand, as well as related inventory, intellectual property and endorsement contracts, and is subject to customary closing conditions and regulatory approvals.

Acushnet also announced plans to continue to provide services for an agreed upon period of time beyond the closing of the sale to facilitate a seamless transition. Services such as production, distribution, field sales and customer service will ensure that Acushnet Company's Cobra trade accounts and golfers continue to receive industry-leading service during this transition period.

"With the sale of Cobra, we have the opportunity to devote all of our resources to the global growth of our industry-leading Titleist and FootJoy brands", said Wally Uihlein, Chairman and CEO of Acushnet Company. "At the same time, Cobra is a strong brand with a heritage of innovation, and we wish the quality associates guiding the brand future success. Golfers and our valued partners will remain the key focus throughout the impending sale and we are confident that our customers will continue to be serviced to our high standards."

Pending regulatory approval, the effective date of the sale of Cobra Golf to PUMA is expected to be early in the second quarter, and all business will continue to be conducted by Acushnet Company until that time. All Acushnet Company associates dedicated to the Cobra business are expected to become employees of PUMA. Financial terms of the pending transaction were not disclosed.

"Titleist and FootJoy are powerful golf brands that are poised for long-term growth", continued Uihlein. "This laser focus and our longstanding commitment to deliver superior performance and quality will strengthen golfers' trust in the Titleist and FootJoy brands in all global markets."

[DavidFehertysBike]

I guess pumas and cobras, OH MY! I guess they will have to contact callaway next to but the rights to the JAWS wedge.. Perhaps even get the shark as a brand spokesman.

[chriskzoo]

From a business perspective, seems like a perfect match. Both market to a younger/hipper demographic and this gives Puma an in on club side of the equation now that they have made inroads on the clothing side of golf.

[Range King]

..and it keeps the competition up with all time rival adidas, who owns Taylormade.

Did you know that the founders of adidas and Puma are brothers?

[FHopper]

... and explains recent moves by players from Cobra to Titleist.

[iacas]

... and explains recent moves by players from Cobra to Titleist.

I don't know about that. These kinds of deals can sometimes come together really quickly. I'm not sure Fortune knew they'd be selling two months ago let alone four or five. Possible, but I'd call it unlikely.

[diducmyball]

... and explains recent moves by players from Cobra to Titleist.

well stated...i wonder if Fowler is going to jump to Cobra later down the road.

[Fat Slice]

Look for Puma to leverage this into their own branded clubs later, probably higher end than the Cobra. They make shoes, but their next product I think will be balls. Do they make balls already?

[Deryck Griffith]

I think this is a perfect match...Puma has wonderfull apparel and now with a line of good clubs, they will be a much youger and hipper brand than Addidas / Taylormade.

[DavidFehertysBike]

Look for Puma to leverage this into their own branded clubs later, probably higher end than the Cobra. They make shoes, but their next product I think will be balls. Do they make balls already?

Would you really use Puma Balls?

[iacas]

Look for Puma to leverage this into their own branded clubs later, probably higher end than the Cobra. They make shoes, but their next product I think will be balls. Do they make balls already?

I don't think they'll do that at all.

[pxc]

well stated...i wonder if Fowler is going to jump to Cobra later down the road.

That was my first thought.

[Chilli Dipper]

Would you really use Puma Balls?

Puma Balls: they're illegal in nine countries. They're made with bits of real puma, so you know they're good. Studies show that 60% of the time, they work every time.

[kurisu]

To me it sounds like this was in talks for a while. Some of the more recent Titleist products have been more and more targeted towards customers who could have been shopping for the higher end Cobra products. Look at the AP1 and AP2. Look at the VG3 driver for the Japan market.

Also, look at Geoff Ogilvy recently changing from Cobra to Titleist. This deal (i.e. selling Cobra) must have been cooking for quite a while, and Acushnet wanted to keep Ogilvy in the family, no?

[Shanks A Million]

Didn't it seem like all the Ping guys were wearing Puma for a while? What was the deal with that?

[jamo]

Look for Puma to leverage this into their own branded clubs later, probably higher end than the Cobra. They make shoes, but their next product I think will be balls. Do they make balls already?

I don't think so. Look at Taylor Made/Adidas, they seem perfectly content to let Taylor Made do the club selling and Adidas make the apparel. I would guess Puma/Cobra would do the same.