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Adidas AG sold TaylorMade Golf to KPS Capital Partners for $425 million in 2017. The sale marked the end of a 20-year ownership by Adidas, which acquired the golf company in 1997 when it bought ski brand Salomon. The sale of TaylorMade Golf, along with its sister companies Adams Golf and Ashworth, was part of Adidas' strategy to focus on its core apparel and footwear brands. As of 2021, TaylorMade Golf is owned by Seoul-based Centroid Investment Partners, a private equity firm.
| Characteristics | Values |
|---|---|
| Current owner of TaylorMade Golf | Centroid Investment Partners |
| Previous owner of TaylorMade Golf | Adidas |
| Year Adidas sold TaylorMade Golf | 2017 |
| Company that bought TaylorMade Golf from Adidas | KPS Capital Partners |
| Amount Adidas sold TaylorMade Golf for | $425 million |
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What You'll Learn
- Adidas sold TaylorMade to KPS Capital Partners for $425 million in 2017
- TaylorMade's CEO says the split from Adidas gave them freedom and independence to sign athletes from rival brands
- TaylorMade was acquired by Seoul-based Centroid Investment Partners in 2021
- Adidas owned TaylorMade since 1997 when it bought ski brand Salomon
- TaylorMade's success began with the innovation of metal drivers in 1979
Adidas sold TaylorMade to KPS Capital Partners for $425 million in 2017
Adidas sold its golf manufacturing brands, including TaylorMade, Adams Golf, and Ashworth, to KPS Capital Partners for $425 million in 2017. The sale was announced in May 2017, with the deal completed in November of the same year.
TaylorMade was initially acquired by Adidas in 1997 when it bought ski brand Salomon. The company focused on the golf equipment market, producing golf clubs, balls, and clothing.
The sale of TaylorMade to KPS Capital Partners was part of Adidas's strategic divestiture of its golf hardware business. In a press release, Adidas stated that the sale would allow them to focus on their core business areas and that they planned to continue producing golf shoes and apparel.
KPS Capital Partners is a private equity firm headquartered in New York City. The firm has a strong track record of working with management teams to improve businesses and drive growth. The acquisition of TaylorMade was in line with their strategy of making controlling equity investments in manufacturing companies.
Following the sale, David Abeles, Chief Executive Officer of TaylorMade, expressed excitement about the new partnership with KPS and their shared commitment to producing technically advanced performance-driven golf equipment. He also highlighted the benefits of independence from Adidas, allowing them to work with a broader range of athletes.
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TaylorMade's CEO says the split from Adidas gave them freedom and independence to sign athletes from rival brands
Adidas acquired TaylorMade in 1997 when it bought ski brand Salomon. In 2017, Adidas sold TaylorMade to private equity firm KPS Capital Partners for USD 425 million. As of May 2021, TaylorMade Golf Company is a subsidiary of Centroid Investment Partners.
TaylorMade's stable of top golfers includes Woods, Dustin Johnson, Jason Day, Rickie Fowler, Jon Rahm, and Rory McIlroy, some of whom are Nike athletes (Woods, Day, McIlroy) and some of whom are Adidas athletes (Johnson and Rahm).
TaylorMade CEO David Abeles said that the split from Adidas gave them "freedom and independence" to sign athletes from rival brands. Indeed, the company signed Tiger Woods in January 2017, before the brand officially sold but after Nike stopped making clubs. Abeles said:
> Had we [still] been owned by Adidas, we probably wouldn’t have a relationship with Tiger. When we were part of the Adidas Group, our athletes were TaylorMade/Adidas athletes. Now we have the freedom and independence to work with the best athletes in the world.
TaylorMade has seen a threefold increase in traffic to its e-commerce site since Tiger Woods won The Masters. Abeles believes the Tiger Woods comeback will be a boost for the entire golf industry, although some analysts are skeptical of that.
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TaylorMade was acquired by Seoul-based Centroid Investment Partners in 2021
TaylorMade Golf Company, an American sports equipment manufacturing company, was acquired by Seoul-based Centroid Investment Partners in May 2021. Centroid Investment Partners is a private equity firm that was established in 2015. It is headed by Jeong Jinhyeok, a former Macquarie investment banker.
TaylorMade was initially independently owned until 1984 when it was acquired by Salomon S.A. Adidas then bought Salomon in 1997, and subsequently, TaylorMade was owned by Adidas. In 2017, Adidas sold off TaylorMade to KPS Capital Partners for $425 million.
Under KPS Capital Partners, TaylorMade experienced substantial growth in revenue and profitability worldwide. The company focused on creating best-in-class products, investing in its brand, and delivering incredible service to its customers. This growth continued under Centroid's ownership, with TaylorMade posting average annual growth rates of over 10% in net sales and over 15% in earnings.
The acquisition of TaylorMade by Centroid Investment Partners was a significant milestone for both companies. Jinhyeok Jeong, the founder and CEO of Centroid, stated that TaylorMade Golf was a "transformational investment" for Centroid, as it provided them with the opportunity to invest in a global leader in the golf industry. The high demand and increased participation in the industry presented strong long-term opportunities for the company.
David Abeles, the CEO of TaylorMade Golf, also emphasized that the transaction was an important step in building upon the brand's momentum worldwide. The focus of the new partnership with Centroid would be to continue creating best-in-class products, investing in the brand, and serving golfers of all skill levels.
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Adidas owned TaylorMade since 1997 when it bought ski brand Salomon
Adidas AG bought TaylorMade Golf in 1997 when it acquired ski brand Salomon. The sportswear giant owned TaylorMade until 2017 when it sold the golf brand to KPS Capital Partners for $425 million.
TaylorMade was an independently owned golf equipment company until 1984, when it was acquired by Salomon S.A. The company was a good fit for Salomon, which wanted to diversify and enter the "three-season" market. TaylorMade, meanwhile, benefited from the worldwide resources of its new parent company.
After Adidas bought Salomon in 1997, TaylorMade's focus was redirected to take over the driver market. The company achieved this goal in 2005, becoming the top driver in golf. TaylorMade also expanded its business by buying golf clothing companies Ashworth in 2008 and Adams Golf in 2012. However, it sold these companies to KPS Capital Partners in 2017, the same year Adidas announced it was selling TaylorMade.
The sale of TaylorMade to KPS Capital Partners marked the beginning of independent paths for the two brands. TaylorMade CEO Abeles said the split from Adidas gave the company "freedom and independence" to work with the best athletes in the world. Indeed, shortly after the sale was announced, TaylorMade signed golfers Tiger Woods and Rory McIlroy.
In 2021, TaylorMade was acquired by Seoul-based private equity firm Centroid Investment Partners.
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TaylorMade's success began with the innovation of metal drivers in 1979
TaylorMade Golf is an American sports equipment manufacturing company that was founded in 1979 by Gary Adams. The company is based in Carlsbad, California, and focuses on the golf equipment market, producing golf clubs, balls, and clothing.
In the early months of 1979, Gary Adams took out a loan of $24,000 and leased a 6,000-square-foot building in McHenry, Illinois. He originally had three employees and sold only one item, his newly invented 12-degree loft metalwood. This metalwood driver outperformed traditional persimmon drivers, with Adams' metal woods out-driving some of the longest hitters on tour.
The success of TaylorMade's metal drivers was immediate, and the company received close to $50,000 in orders at the 1978 PGA Merchandise Show. By 1980, the metalwood driver had been renamed the Pittsburgh Persimmon, and it became the first driver to depart from a classical wooden construction. This driver was so successful that it became one of TaylorMade's strongest lines throughout the 1980s.
TaylorMade continued to innovate and improve its metal drivers in the following years. In 1983, they launched the Burner Driver, which was designed with dimpling on the side to increase club head speed. The company also introduced a new shaft of superior quality, which allowed golfers to make distance gains.
Over the years, TaylorMade has remained at the forefront of driver technology, introducing new models and features to enhance performance and optimize distance. The company has since been acquired by various companies, including Adidas in 1997, and most recently by Centroid Investment Partners in 2021.
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Frequently asked questions
No, Adidas sold TaylorMade Golf for $425 million in 2017.
TaylorMade Golf is currently owned by Centroid Investment Partners, a Korean private equity firm.
Adidas sold TaylorMade Golf due to the steady decline of the golf equipment industry.
