Adams Golf for Sale?

[mvmac]

This Article came out Wednesday.  I don't think Adams will be bought by another Equipment company.  It will probably a sports apparel line like Oakley or Under Armour,  very much like Puma buying Cobra and Fila buying Titleist.

Quote:

Adams Golf Inc., the golf club seller that today said it hired Morgan Stanley to review strategic alternatives, may consider among its options a sale or starting a dividend, Chief Executive Officer Chip Brewer said.

Potential suitors for Plano, Texas-based Adams include Callaway Golf Co., Nike Inc. and Adidas AG, said a person familiar with the matter, who declined to be identified because the discussions are private.

Adams Golf, founded by Chairman Barney H. Adams in 1987, boosted sales 14 percent to $97.4 million in the 12 months ended Sept. 30. After posting a net loss of $12.2 million in 2009, the company has made money in six of the past seven quarters. The shares, which gained 37 percent last year, rose 4.3 percent after the close to $6.58 at 6:32 p.m. in New York.

“We are going to go through with a process that best helps shareholder value,” Brewer said today in a telephone interview.

Morgan Stanley, based in New York, advised Fortune Brands Inc. last year on the sale of its Titleist golf unit to a group led by Fila Korea Ltd. for $1.23 billion in cash.

The review may not result in a transaction, Adams said today in a statement.

Pen Pendleton, a spokesman for Morgan Stanley, declined to comment. Tim Buckman, a spokesman for Callaway, declined to comment, and Mary Remuzzi, a spokeswoman for Nike, didn’t immediately return voicemail and e-mail messages seeking comment. Lauren Lamkin, a spokeswoman for Adidas, declined to comment.

More about Adams Exploring Alternative Stategies

Quote:

PLANO, Texas , Jan. 4, 2012 (GLOBE NEWSWIRE) -- Adams Golf, Inc. ( ADGO ) (Nasdaq:ADGF) ("Adams Golf" or the "Company") today announced that its Board of Directors has unanimously decided to explore and evaluate strategic alternatives to enhance shareholder value. The Board of Directors intends to consider the full range of available options. The Company has engaged Morgan Stanley & Co. to assist in the evaluation of these alternatives.

The Company has not made a decision to pursue any specific strategic alternative at this time, and the exploration of strategic alternatives may not result in any specific action or transaction. There is no definitive timetable for the process. The Company does not intend to provide updates or make any further comment regarding the evaluation of strategic alternatives unless a specific action is approved by the Board of Directors or the process is concluded.

"We are pleased to be working with Morgan Stanley on this initiative," stated Chip Brewer , CEO and President of Adams Golf. "They bring strong market insight and a wealth of experience in these matters.  As we continue to strengthen the Adams Golf brand, the entire board thinks the current market valuation is inconsistent with the company's performance and future prospects."

About Adams Golf

Developing high-performance and technologically innovative golf products is the cornerstone of Adams Golf. From initial design, through manufacturing and servicing, Adams Golf is committed to helping golfers of all abilities enjoy the game of golf. For more information on Adams Golf, please visit www.adamsgolf.com or review our reports on file with the Securities and Exchange Commission .

The Adams Golf logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5031

Forward-Looking Statements

This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The statements may be identified by terminology such as "may," "would," "expect," "intend," "estimate," "anticipate," "plan," "seek," "inevitably," "appears," or "believe." Such statements reflect the current view of Adams Golf with respect to future events and are subject to certain risks, uncertainties and assumptions related to certain factors including, without limitation, the uncertainties related to any strategic alternative being identified or consummated, general economic conditions, changes in consumer demand for golf products, unforeseen events affecting the golf industry and other factors detailed under "Risk Factors" in our most recent Form 10-K and subsequent Form 10-Qs on file with Securities and Exchange Commission . These filings can be obtained by contacting Adams Golf Investor Relations.

Although Adams Golf believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Except as required by federal securities laws, Adams Golf undertakes no obligation to publicly update or revise any written or oral forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release. All subsequent written and oral forward-looking statements attributable to Adams Golf or persons acting on its behalf are expressly qualified in their entirety by the applicable cautionary statements.

[newtogolf]

I can't see Callaway buying them, they have posted negative net income numbers the last two years.  They might believe adding Adams would help offset their own losses.  I could see Oakley or Under Armour making the move but they have to be concerned that owning an equipment company could impact their sales of their core products.

[iacas]

I like Adams and hope they stick around. They've been my "favorite" of the "second tier" (I mean that not in terms of product quality, but more in name recognition) golf equipment companies for a long time. Their drivers are pretty great, their irons are pretty nice, and their hybrids a lot of people love.

[LuciusWooding]

Come on man, if you're buying or selling something post it in the marketplace!

In all seriousness, I'd be surprised if they went away, they are one of the few companies offering affordable and entry level clubs with a decent brand recognition. They seem to be aimed too much towards old men and high handicappers, though. The crucial market share of men with a mid life crisis and too much money are perhaps buying Nike and Taylormade.

Maybe they decided to counter that by getting Rickie Fowler on their staff? Fingers crossed...

[jamo]

It would seem kind of odd if Adams was bought by either Under Armour or Oakley, if only because those two advertise themselves as more of "young people brands," while Adams, mostly because of all of the Champions Tour advertising they do, has always struck me as a bit of an "old person brand." I like most of their clubs lately though.

[sean_miller]

Originally Posted by jamo

It would seem kind of odd if Adams was bought by either Under Armour or Oakley, if only because those two advertise themselves as more of "young people brands," while Adams, mostly because of all of the Champions Tour advertising they do, has always struck me as a bit of an "old person brand."

I like most of their clubs lately though.

You're probably too young to remember when Cobra was an old people brand. So were Puma and Adidas.

[WWBDD]

Agree that it's a good company.

I bought my FiL a full seniors set comprised of a70s irons and have been jealous of them ever since.

I hope whomever buys Adams doesn't screw them up.

[tristanhilton85]

Originally Posted by iacas

I like Adams and hope they stick around. They've been my "favorite" of the "second tier" (I mean that not in terms of product quality, but more in name recognition) golf equipment companies for a long time. Their drivers are pretty great, their irons are pretty nice, and their hybrids a lot of people love.

Exactly my thoughts... I've had a lot of Adams clubs over the years and have loved them... They don't have quite the same name brand recognition as a Titleist or Callaway, but they are close.  They also seem to do really well with women's and beginners sets.  Hopefully they stick around... the more options I have the better.

[jamo]

You're probably too young to remember when Cobra was an old people brand. So were Puma and Adidas.

Probably. I had them as my fifth[URL=http://thesandtrap.com/b/trap_five/who_do_you_want_sponsoring_you] favorite brand[/URL] too, so if they're an old guy brand, I can live with that. The 9032LS for $150 at most places is a great deal. I think the Speedline series and less of an emphasis on the hybrids have started to change things a bit for Adams for the better.

[Jmdmbike]

Not sure if Adams is an older guys brand or not, but it looks like Kenny Perry is Adam's newest player/spokesperson. Yani Tseng is an Adam's player as well, right? Seems they have the mature guys and young women covered.

[k-troop]

And Ryan Moore, who's the oldest guy on tour under 30.

[mvmac]

Originally Posted by Jmdmbike

Not sure if Adams is an older guys brand or not, but it looks like Kenny Perry is Adam's newest player/spokesperson. Yani Tseng is an Adam's player as well, right? Seems they have the mature guys and young women covered.

Yeah, Yani is an Adams staffer.  Don't have to pay the Champions tour or LPGA players as much.