Ava Romero
In 2012, TaylorMade, a business segment of the TaylorMade-adidas Golf Company, acquired Adams Golf for $10.80 per share in cash, or approximately $70 million. The acquisition was financed by the Adidas Group with cash on hand or through existing credit lines. The transaction was subject to customary closing conditions and regulatory approvals, as well as approval by Adams Golf shareholders. With this acquisition, TaylorMade-adidas Golf aimed to broaden its product range and extend its presence across a wider array of golfers.
| Characteristics | Values |
|---|---|
| Date of acquisition | March 19, 2012 |
| Buyer | TaylorMade-adidas Golf business segment |
| Buyer's parent company | Adidas Group |
| Buyer's headquarters | Carlsbad, California |
| Transaction value | $70 million |
| Price per share | $10.80 |
| Insider ownership | Approximately 35% of Adams Golf's outstanding shares |
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What You'll Learn
- TaylorMade-adidas Golf acquired Adams Golf for $70 million
- The deal was financed with cash and through existing credit lines
- The acquisition was subject to approval by Adams Golf shareholders
- The merger reinforces TaylorMade-adidas Golf's position as the world's top player in golf
- The Adams Golf brand will maintain its headquarters in Plano, Texas
TaylorMade-adidas Golf acquired Adams Golf for $70 million
On March 19, 2012, TaylorMade-adidas Golf announced that it had reached an agreement to acquire all of Adams Golf's outstanding shares for $10.80 per share in cash, or approximately $70 million. The acquisition was financed by the Adidas Group with cash on hand or through existing credit lines.
The transaction was subject to customary closing conditions and regulatory approvals, as well as approval by Adams Golf shareholders. The Board of Directors of Adams Golf unanimously approved the transaction, with certain insiders owning approximately 35% of Adams Golf's outstanding shares and agreeing to vote their shares in favor of the acquisition.
Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforced its position as the world's leading player in golf. The addition of Adams Golf allowed TaylorMade-adidas Golf to broaden its product range and extend its presence across a wider array of golfers. According to Adidas Group CEO Herbert Hainer, "This acquisition reflects our commitment to continued growth in the golf category."
The proposed combination of Adams Golf and TaylorMade-adidas Golf brought together two highly complementary sets of brands. Adams' focus on game-improvement clubs, senior golfers, and women golfers complemented TaylorMade-adidas Golf's focus on younger and low-to-mid handicap golfers. Additionally, TaylorMade acquired intriguing intellectual property in the area of slots in clubheads and Yes! Golf's C-Groove technology.
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The deal was financed with cash and through existing credit lines
In 2012, Adidas Group's TaylorMade business segment acquired Adams Golf for $10.80 per share in cash, or approximately $70 million. The deal was financed with cash and through existing credit lines. The transaction was subject to customary closing conditions and regulatory approvals, as well as approval by Adams Golf shareholders. Adidas Group maintained Adams Golf's headquarters in Plano, Texas.
The acquisition of Adams Golf by TaylorMade-adidas Golf reinforced its position as the world's leading player in golf. The addition of Adams Golf allowed TaylorMade-adidas Golf to expand its product range and target a wider range of golfers, including senior and women golfers.
The deal also gave TaylorMade access to Adams Golf's intellectual property in the area of slots in clubheads and Yes! Golf's C-Groove technology. Adams Golf had also been successful in the hybrid count on the PGA Tour in recent years, an area where TaylorMade had lagged.
The acquisition was approved by the Board of Directors of Adams Golf, with certain insiders owning approximately 35% of Adams Golf's outstanding shares and agreeing to vote their shares in favor of the transaction.
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The acquisition was subject to approval by Adams Golf shareholders
In 2012, Adidas Group's TaylorMade-adidas Golf business segment reached an agreement to acquire all the outstanding shares of Adams Golf. The transaction was valued at approximately $70 million, or roughly €53 million, and was subject to customary closing conditions and regulatory approvals. The acquisition was also subject to approval by Adams Golf shareholders.
The Board of Directors of Adams Golf unanimously approved the transaction. Certain insiders, including 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 owned approximately 35% of Adams Golf's outstanding shares and agreed to vote their shares in favor of the transaction.
The acquisition of Adams Golf by TaylorMade-adidas Golf reinforced its position as the world's leading player in golf. It allowed TaylorMade-adidas Golf to expand its product offerings and reach a wider range of golfers, including those focused on game improvement, seniors, and women.
The transaction was expected to close in mid-2012, and Adams Golf maintained its headquarters in Plano, Texas, following the acquisition.
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The merger reinforces TaylorMade-adidas Golf's position as the world's top player in golf
In 2012, Adidas Group's TaylorMade business segment acquired Adams Golf for $10.80 per share in cash, totalling approximately $70 million. The merger reinforced TaylorMade-Adidas Golf's position as the world's top player in golf.
The acquisition brought together two highly complementary sets of brands. Adams Golf brought its focus on game improvement, as well as senior and women golfers, while TaylorMade-Adidas Golf had a focus on younger and low-to-mid handicap golfers. The merger allowed TaylorMade-Adidas Golf to broaden its product range and extend its presence across a wider array of golfers.
The addition of Adams Golf's intellectual property in the area of slots in clubheads and Yes! Golf's C-Groove technology was also a significant benefit for TaylorMade-Adidas Golf. Adams Golf had also often won the hybrid count on the PGA Tour in recent years, which was an area that TaylorMade had been keen to improve.
The merger was financed by the Adidas Group with cash on hand or through existing credit lines. The transaction was subject to standard closing conditions and regulatory approvals, as well as approval by Adams Golf shareholders. The transaction was expected to close in mid-2012.
Through this merger, TaylorMade-Adidas Golf solidified its position as the leading player in the golf industry, with a comprehensive product range and a diverse customer base.
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The Adams Golf brand will maintain its headquarters in Plano, Texas
The decision to retain the Adams Golf headquarters in Plano, Texas, reflects the acquiring company's commitment to growth in the golf category. By combining the strengths of both brands, TaylorMade-adidas Golf aimed to broaden its product range and extend its reach across a diverse range of golfers.
The acquisition brought together two highly complementary brands within the golf industry. Adams Golf, known for its focus on game improvement clubs, particularly hybrids, and its appeal to senior and women golfers, complemented TaylorMade-adidas Golf's focus on younger and low-to-mid handicap golfers.
Additionally, the acquisition provided TaylorMade with access to intriguing intellectual property, including innovations in clubhead design and C-Groove technology, further enhancing their position in the market.
The retention of the Adams Golf headquarters in Plano, Texas, allows for a seamless integration of the two brands, leveraging their combined strengths to cater to a wider range of golfers and drive growth within the competitive golf equipment market.
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Frequently asked questions
Adams Golf was acquired by TaylorMade-adidas Golf in 2012 for $70 million.
Insiders who owned approximately 35% of Adams Golf's outstanding shares included John M. Gregory, Joseph R. Gregory, SJ Strategic Investments LLC, B.H. (Barney) Adams, Russell L. Fleischer, Mark R. Mulvoy and Robert D. Rogers.
Adams Golf has often won the hybrid count on the PGA Tour. The company is also known for its focus on game-improvement clubs and its C-Groove technology.
