After months of shopping its golf brands, Adidas has sold TaylorMade, Adams Golf and Ashworth Golf to KPS Capital Partners LP for $425 million.
The sports apparel and equipment brand announced the sale Wednesday; the deal is expected to be completed in late 2017. KPS Capital is a private equity firm based in New York City. It manages approximately $5.3 billion in assets across a variety of industries.
"TaylorMade is a leading global golf brand with an exceptionally strong market position," Kasper Rorstead, CEO of adidas AG, said in a press release. "We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership. At the same time, we welcome all adidas Golf employees who will be integrated into our adidas Heartbeat Sports Business Unit."
Said David Shapiro, a managing partner of KPS, "TaylorMade is one of the preeminent golf equipment brands worldwide, with leading-edge products that consistently provide consumers a distinct performance advantage over the competition. ... The combination of this iconic brand and KPS' track record of working constructively with talented management teams to make businesses better will provide the ideal foundation for TaylorMade's future growth."
The move comes just one day after TaylorMade, which has been owned by Adidas since 1997, announced an endorsement deal with world No. 2 Rory McIlroy. Among the other stars on TaylorMade's Tour roster are Tiger Woods, Sergio Garcia, Jason Day, Dustin Johnson and Justin Rose. It remains to be seen how the Tour staff will be handled under the new ownership.
The future of the Adams and Ashworth brands is also unknown.