Jump to content
IGNORED

TaylorMade-adidas Golf Company to acquire Adams Golf


Note: This thread is 3273 days old. We appreciate that you found this thread instead of starting a new one, but if you plan to post here please make sure it's still relevant. If not, please start a new topic. Thank you!

Recommended Posts

  • Administrator

Whoa!!!!

TaylorMade-adidas Golf Company to acquire Adams Golf

Herzogenaurach and Carlsbad, Calif. (March 19, 2012) – The adidas Group and Adams Golf, Inc. (NASDAQ: ADGF) today announced that the TaylorMade-adidas Golf business segment has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $ 70 million (approximately € 53 million), which represents a premium of approximately 71% to the share price prior to Adams Golf’s announcement that it was examining strategic alternatives on January 4, 2012.

Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforces its position as the world’s number one player in golf. The addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers.

“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group CEO Herbert Hainer. “The proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement as well as senior and women golfers with TaylorMade-adidas Golf’s focus on the younger and the low-to-mid handicap golfer.”

“We are very excited to team up with Adams Golf, whose management team we have respected for many years,” commented Mark King, President and CEO of TaylorMade-adidas Golf. “Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal.”

"This merger provides strong opportunities for our employees, suppliers and partners,” said Barney Adams, Interim CEO of Adams Golf. “The Adams Golf brand will fit nicely into TaylorMade-adidas Golf’s stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources. We are also excited that TaylorMade-adidas Golf has decided to maintain Adams Golf’s headquarters in Plano, Texas.”

The Board of Directors of Adams Golf has unanimously approved the transaction. Certain insiders, who include John M. Gregory, Joseph R. Gregory, SJ Strategic Investments LLC, B.H. (Barney) Adams, Russell L. Fleischer, Mark R. Mulvoy and Robert D. Rogers, collectively own approximately 35% of Adams Golf’s outstanding shares and have agreed to vote their shares in favor of the transaction. The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.

In connection with the transaction, Barclays is acting as financial advisor to the adidas Group, and Sheppard Mullin Richter & Hampton LLP is serving as legal counsel. Morgan Stanley is acting as financial advisor to Adams Golf and Haynes & Boone, LLP is serving as legal counsel.

About the adidas Group
The adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of products around the core brands: adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, the Group has more than 46,000 employees and generated sales of over € 13 billion in 2011.

About TaylorMade-adidas Golf
Headquartered in Carlsbad, California, TaylorMade-adidas Golf Company sells golf clubs, balls clothing and accessories under the TaylorMade, adidas Golf and Ashworth brands. TaylorMade-adidas Golf Company posted 2011 sales of over € 1.0 billion.

About Adams Golf
Adams Golf designs, assembles, markets and distributes premium quality, technologically innovative golf clubs for all skill levels. Recently launched products include the Speedline Fast 12 drivers, Fast 12 LS drivers and the Speedline Fast 12 fairway woods, along with the Idea a12 OS irons and hybrids, Idea a12 hybrids, Idea Pro a12 irons and hybrids, Idea Tech V3 irons and hybrids, Redline irons, Idea a7 and a7 OS irons and hybrids, and Speedline 9088 UL drivers.  Adams Golf also develops new products under the Yes! Putters, Women's Golf Unlimited, Lady Fairway and Square 2 brands. In 2011, net sales were approximately $ 97 million (€ 73 million).

Additional Information About the Transaction
In connection with the proposed transaction, Adams Golf will file a proxy statement and other relevant documents concerning the proposed transaction with the Securities and Exchange Commission (SEC). The definitive proxy statement and other materials filed with the SEC will contain important information regarding the merger, including, among other things, the recommendation of Adams Golf’s board of directors with respect to the merger. INVESTORS ARE URGED TO READ THE PROXY STATEMENT AND OTHER MATERIALS THAT ADAMS GOLF FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS. You will be able to obtain the proxy statement, as well as other filings containing information about Adams Golf and the merger, free of charge, at the website maintained by the SEC at www.sec.gov . Copies of the proxy statement and other filings made by Adams Golf with the SEC can also be obtained, free of charge, by directing a request to Adams Golf, Inc., 2801 East Plano Parkway, Plano, Texas 75074, Attention: Investor Relations.

Participants in the Solicitation
The directors and executive officers of Adams Golf and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Adams Golf’s directors and executive officers is available in its Annual Report on Form 10-K filed with the SEC on March 6, 2012 (as it may be amended from time to time) and its Definitive Proxy Statement on Schedule 14A filed with the SEC on April 8, 2011. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available. Investors should read the proxy statement carefully when it becomes available before making any voting or investment decisions.

Cautionary Statement Regarding Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as “expect,” “anticipate,” “plan,” “may,” “will,” “estimate” or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Actual results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: the ability to obtain regulatory approvals of the acquisition on the proposed terms and schedule; the failure of Adams Golf’s stockholders to approve the acquisition; the risk that the acquisition may not be completed in the time frame expected by the parties or at all; the parties’ ability to satisfy the closing conditions and consummate the transactions; and Adams Golf’s ability to maintain its existing relationships with its employees, customers and suppliers. Additional information regarding factors that may affect future results are described in Adams Golf’s filings with the SEC, including, without limitation, Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

All forward-looking statements speak only as of the date they were made. Neither Adams Golf, Inc. nor TaylorMade-adidas Golf undertakes any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of the press release.

Link to post
Share on other sites
Awards, Achievements, and Accolades

Great, now Taylormade will have a sidekick brand just like Titleist. I guess TM thought they could keep selling the Adams brand to old men and keep themselves as the flagship line... Too bad most old men play TM already based on what I've seen.

I don't like the move, Adams makes decent equipment and is relatively affordable, while TM overprices everything. None in the industry are better at raking in cash than TM, however, so I can see the appeal for Adams if they're losing money. The value will be the first thing to go, however.

Link to post
Share on other sites
Awards, Achievements, and Accolades

  • Administrator

Originally Posted by LuciusWooding

Great, now Taylormade will have a sidekick brand just like Titleist.


What sidekick brand is that? Cobra was bought by Puma and Titleist was sold to Fila.

Link to post
Share on other sites
Awards, Achievements, and Accolades



Originally Posted by iacas

What sidekick brand is that? Cobra was bought by Puma and Titleist was sold to Fila.



I forgot about that. The sidekick brand refers to... uh, Scotty Cameron. Let's go with that. No one should be responsible for retaining any such changes in information after they start playing golf.

Link to post
Share on other sites
Awards, Achievements, and Accolades

I'm guessing it was cheaper for TM to buy Adams than pay license rights for their Speed Pocket on the RocketBallz clubs which was obviously "borrowed" from Adams Speed Slot.  I like Adams hybrids, the Pro A12 specifically, so I hope they keep it around.

Link to post
Share on other sites
Awards, Achievements, and Accolades

I'm a recent Adams convert. I hope this transaction doesn't result in any discernible de-contenting of Adams equipment .. though I don't have any worries since TM has made quality equipment from what I've been able to hit.  Adams' marketing certainly won't suffer.

Link to post
Share on other sites

I'm guessing it was cheaper for TM to buy Adams than pay license rights for their Speed Pocket on the RocketBallz clubs which was obviously "borrowed" from Adams Speed Slot.  I like Adams hybrids, the Pro A12 specifically, so I hope they keep it around.

Maybe they want the Speedline tech too. Aerodynamics is really the only frontier Taylor Made hasn't fully gone after.

Link to post
Share on other sites
Awards, Achievements, and Accolades

From what I've read, Adams was a profitable company so if the TM overhead doesn't impact it too much they should be a viable brand under TM.  The issue is that TM RocketballZ is a rip off off the Adams fairway woods so not sure if Adams will have it's product lines cut to fit in better with TM long term goals and market strategy.  I could see them keeping Adams irons and hybrids and killing the fairway woods and drivers.

Originally Posted by topspin4hand

I'm a recent Adams convert. I hope this transaction doesn't result in any discernible de-contenting of Adams equipment .. though I don't have any worries since TM has made quality equipment from what I've been able to hit.  Adams' marketing certainly won't suffer.



Link to post
Share on other sites
Awards, Achievements, and Accolades

  • Moderator

Very interesting news.  When I was at the TaylorMade media last Dec, they were asking us what we thought about other companies and who we thought was growing.  Adams was part of the conversation and the one that TaylorMade was most "afraid" of in terms of taking away market share.  Like TaylorMade, Adams tells a visual story with their technology.

Makes sense to acquire them, Adams can be their lower cost brand focused on game improvement clubs and TaylorMade will be the premium side, focused on the latest technology, PGA tour dominance, etc.

Link to post
Share on other sites
Awards, Achievements, and Accolades

  • Moderator


Originally Posted by caniac6

I hope Taylormade doesn't do to Adams what Callaway did to Hogan.

No they want to make a profit off Adams Hogan was part of the deal because Callaway wanted the Spalding/Top Flite ball patents and manufacturing.  Like I said you're going to see Adams and TaylorMade represent different sides of Adidas golf

Link to post
Share on other sites
Awards, Achievements, and Accolades

Didn't Adams "borrow" that technology from Nike? Personally i see this as bad news as one more decent competitor is pretty much gone. I can't imagine it makes a lot of sense to put out a SpeedlineFast 12LS driver and an R11. Not to mention the company is going to have way too many irons. Heck I think Adams have 9 irons is probably 3 too many. I don't see a lot of synergy in this deal but maybe they have a good plan. [quote name="newtogolf" url="/t/56454/taylormade-adidas-golf-company-to-acquire-adams-golf#post_690222"] I'm guessing it was cheaper for TM to buy Adams than pay license rights for their Speed Pocket on the RocketBallz clubs which was obviously "borrowed" from Adams Speed Slot.  I like Adams hybrids, the Pro A12 specifically, so I hope they keep it around.  [/quote]
Link to post
Share on other sites

  • Moderator

Unfortunately, this is the way of the business world.  I wish folks at Adams in Texas good luck.  I'm sure there will be some "Right Sizing".

Link to post
Share on other sites
Awards, Achievements, and Accolades

I am glad I bought my super hybrid before Taylormade got ahold of it and painted it WHITE!  I should have bought stock in white paint and I would be a rich man.  THat move would be horrible for Adams in my opinion.  Glad I made the switch to Ping!!!!

Link to post
Share on other sites

IMO, this is a bad thing for golf because it takes away another quality competitor.  Adams was a great golf company who was an up and comer and TM basically wiped them out with the stroke of a pen.

I wouldnt be at all surprised if TM was very much worried about Adams as a competitor and/or there was some legal rumblings about the speed pocket technology and to avoid a huge lawsuit, TM simply bought Adams.

Either way, I fully expect TM to take whatever technology from Adams that they want, water down the Adams brand and make as much money as they can until people lose interest in Adams.  Much the same as what happened to the Hogan brand.

Link to post
Share on other sites

I agree it's a bad thing for golf, but given the decline and profits many golf companies are experiencing it's not surprising.  Consolidation is usually an indication of a declining market and I'd guess that Adams didn't believe their numbers would trend upwards going forward and felt they needed to sell now to maximize shareholder value.  If TM is smart they will keep Adams as a separate division but they seem pretty consumed with the TM branding so I'm not sure if they will.   I know Callaway has posted losses for at least three years in a row so I'm wondering how long they can last before they shut down or get acquired.

Originally Posted by TitleistWI

IMO, this is a bad thing for golf because it takes away another quality competitor.  Adams was a great golf company who was an up and comer and TM basically wiped them out with the stroke of a pen.

I wouldnt be at all surprised if TM was very much worried about Adams as a competitor and/or there was some legal rumblings about the speed pocket technology and to avoid a huge lawsuit, TM simply bought Adams.

Either way, I fully expect TM to take whatever technology from Adams that they want, water down the Adams brand and make as much money as they can until people lose interest in Adams.  Much the same as what happened to the Hogan brand.



Link to post
Share on other sites
Awards, Achievements, and Accolades

Note: This thread is 3273 days old. We appreciate that you found this thread instead of starting a new one, but if you plan to post here please make sure it's still relevant. If not, please start a new topic. Thank you!

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



  • Want to join this community?

    We'd love to have you!

    Sign Up
  • Support TST Affiliates

    TourStriker PlaneMate
    Golfer's Journal
    Whoop
    SuperSpeed
    FlightScope Mevo
    Use the code "iacas" for 10% off Mevo and the code "iacasfeb21" for 10% off SuperSpeed.
  • Posts

    • Me neither (with other Pure models), until now. I think with a little more careful technique it's not a problem. I was accustomed to the grips just blowing on/off quickly without having to pay too much attention, except for getting the alignment correct and stretching to the length you want. I made a short clip of removing the grip from my 4-iron, and you can see after a couple bursts there is a point where the top wants to start ballooning (4 seconds in), and if I wasn't careful with the bursts, it might have blown up (pardon the messy garage).  
    • Wow. I've never had that happen. Like, ever. 🙂 I just took the Combos off five of my irons without any issues at all.
    • Day 435 - March 8, 2021 Practiced downtown at Golf Evolution and then played four holes with four balls with a 7-iron at Whispering Woods. Got a tee time tomorrow!
    • Yeah - just a bare steel shaft. They are brand new shafts, no previous double sided tape or masking tape. I bet a single wrap of masking tape would reduce the friction between the bare shaft and rubber grip enough to prevent this. At least it seems like the non-sticky side of masking tape is slipperier than the chromed steel.
    • I have to say that this video is very reassuring, because just last Saturday I discovered an issue with the 5-iron in my set of MP-4's that my local shop was unsure would be fixable or if it would be best served by replacing the clubhead (due to overbending of the iron). That's the 5-iron on the right, 4-iron on the left. A little tricky to tell from the angle of the clubs (trying to line them up side by side), but the 5-iron actually has some substantial curvature in the hosel.  I've been playing these irons for 4 years now, and unwisely ignored the advice to have your lofts and lies checked annually if you're playing forged irons. In that time I've probably played somewhere north of 300 rounds of golf, and my 5-iron specifically has always been my "go-to" club for hitting low punch shots to get myself out of trouble. The ground in Colorado is pretty firm (especially in winter), and I have a fairly high swing speed so this is a somewhat extreme example. It turns out that over the years my 5-iron has been slowly bending backwards until today, where it now actually measures half a degree stronger than my 4-iron (which is still at the original loft)! I knew my gap between 5 and 6 iron was large, but it wasn't until I went out this spring to create an updated distance chart for all my clubs (it's been years since I made my last one) that I realized just how big a problem there was and looked to find the cause. It's reassuring to see the test where a club with very similar design and metallurgy (the MP-18, compared to my MP-4) could be adjusted that far without breaking, so here's to hoping mine can be bent back without overly work-hardening the steel. If not, then I suppose it's as good excuse as any to go out and buy new clubs!
  • Today's Birthdays

    1. Andy B
      Andy B
      (58 years old)
    2. Dsavin
      Dsavin
      (35 years old)
    3. Jonh
      Jonh
      (27 years old)
    4. marksgd
      marksgd
      (57 years old)

×
×
  • Create New...

Important Information

Welcome to TST! Signing up is free, and you'll see fewer ads and can talk with fellow golf enthusiasts! By using TST, you agree to our Terms of Use, our Privacy Policy, and our Guidelines.

The popup will be closed in 10 seconds...