Callaway and Blackstone Look at Fortune Brands (Titleist)

[BigAl5150]

Interesting should it pass regulatory scrutiny.

http://www.reuters.com/article/2011/04/28/us-fortune-idUSTRE73R7WF20110428

[newtogolf]

Makes sense for Callaway, but not very good for the industry.  These types of acquisitions where businesses purchase their competitors don't usually go well for the acquired company or customers.  Titleist and Footjoy are seen as higher end products compared to Callaway.   I can't imagine Callaway would allow that to continue after they acquired them.

[clubchamp]

I wouldn't say they are viewed as a higher end product in terms of clubs. I would say titleist/foot joy is more established in the clothing, shoe, and ball market. There's no way  callaway drop the titleist or footjoy name if anything I think callaway would drop their own shoe and clothing line. I think callaway would continue their ball line along side titleist. I also think that callaway wouldn't make that purchase because it could easily bankrupt them if it doesn't go well. Blackstone I could see buying them but only for a short term it definitely would not be a home for acushnet. I still say an asian company will be the final buyer of acushnet.

[newtogolf]

Quote:

Originally Posted by clubchamp

I wouldn't say they are viewed as a higher end product in terms of clubs.

My statement was based on pricing and target market mostly.

Titleist has one line of woods priced at the top end of the market, their irons are target intermediate to advanced golfers, Vokey wedges and Scotty Cameron putters which start at $300.   Callaway, has four product lines of woods, six different iron sets, and their Odyssey putters range in price from $85 - $300.  Point is Callaway covers all the price ranges and golfers where as Titleist seems to focus on top end only.

[Clambake]

I don't see anything that would run afoul of Justice department approval.   The parties would argue (successfully I believe) that there is adequate competition in the golf ball market with Bridgestone, Srixon, and Taylormade such that this would not constitute an uncompetitive monopoly or duopoly.    With clubs there are certainly enough competitors in the mix that any anticompetitive concerns are unwarranted, and same with the clothing lines.      No red flags here that I see.

Whether it makes business sense is another question!

[Tomboys]

I've always had great customer service from Acushnet.  Regardless of what they ultimately decide to do, I hope they're able to maintain the integrity of their products and services.  Beyond that, I couldn't care less who bankrolls them.

[GaijinGolfer]

Hmmm, Titleist being bought by Callaway wouldnt be very good for the industry, IMO.  Id rathar see Callaway buy them than to see Nike buy them though.

[newtogolf]

Quote:

Originally Posted by TitleistWI

Hmmm, Titleist being bought by Callaway wouldnt be very good for the industry, IMO.  Id rathar see Callaway buy them than to see Nike buy them though.

I agree, would prefer Callaway over Nike, but IMO, Puma or UnderArmour would be the best options for the industry, followed by Mizuno.