Taylormade SOLD!

[PaPaD]

adidas sells TaylorMade to Private Equity Firm

 

[TEA Time]

LMAO - so they signed Rory and others for hundreds of millions of dollars and then sold the brand while laughing all the way to the bank "Those guys are your problems now."

 

[PaPaD]

LMAO - so they signed Rory and others for hundreds of millions of dollars and then sold the brand while laughing all the way to the bank "Those guys are your problems now."

Pretty sure the new owners were in on the Rory contract.........

 

[limpalong]

Taylor Made, Adams, and Ashworth went as a package deal for $425 million. To me, that sounds like 'chicken feed'... pocket change... for what I would have expected. The endorsement contracts alone probably exceed the sale price. So, the entire kit and caboodle wasn't worth as much as they are paying the pros who endorse the equipment? Infrastructure, personnel, inventory, endorsement liabilities... Hopefully, the investment group didn't buy a pig-in-a-poke and it disappears.
Ashworth has pretty well disappeared with Adidas pushing their own name on clothing. I could see Ashworth coming back to complement the hard goods lines. Adams is the same as dead weight anyway. Wonder if the new owners will continue the one-per-week new driver release schedules?? It's always been a competition to see whether TMAG can release a new driver as often as WBL buys a new driver. WBL might begin winning that race!!!

 

[limpalong]

Fila paid $1.2 billion... that's with a "B"... for Titleist/Acushnet. Of course, Titleist is still king of the ball market. Foot Joy is also part of that package and is strong in a very competitive market. The $425 million is just a little over a third of what Fila paid for the Titleist package.

 

[TEA Time]

Pretty sure the new owners were in on the Rory contract.........

For their sake I hope so. The point is: THEY are now responsible for writing those $10M checks every year.

 

[PaPaD]

Amazing conundrum to see a company, whose products are wildly popular in both amateur and professional golf, losing money. Taylormade shit is EVERYWHERE. Every golf course I go to, I see their drivers and irons in many bags. Their tour presence is huge......and yet they sell for $425m. I wonder how much debt the new owners inherited.

 

[ualtim]

It always scares me when a private equity/investment firm takes over a business. Usually does not work out so well for the consumer, employees, nor the company in the end. In the airline industry, these deals usually lead to the death of the airline (most recently, Midwest Express). In the tennis industry, you just have to look at brands like Prince and Donnay to see how that has worked out. Quality declines, replacement parts impossible to find, and eventually the company disappears until the only thing left is the name which the group will then license out to some cut rate manufacturer who pumps out low quality products. The firm milks the name for as long as possible while relentlessly cutting costs by reducing quality. In the end, once the tit no longer produces, they take their money and run leaving nothing but a shadow of what was once a good company.

 

[PaPaD]

It always scares me when a private equity/investment firm takes over a business. Usually does not work out so well for the consumer, employees, nor the company in the end. In the airline industry, these deals usually lead to the death of the airline (most recently, Midwest Express). In the tennis industry, you just have to look at brands like Prince and Donnay to see how that has worked out. Quality declines, replacement parts impossible to find, and eventually the company disappears until the only thing left is the name which the group will then license out to some cut rate manufacturer who pumps out low quality products. The firm milks the name for as long as possible while relentlessly cutting costs by reducing quality. In the end, once the tit no longer produces, they take their money and run leaving nothing but a shadow of what was once a good company.

Well shit. Maybe I should sign with PING........

 

[warbirdlover]

Taylor Made, Adams, and Ashworth went as a package deal for $425 million. To me, that sounds like 'chicken feed'... pocket change... for what I would have expected. The endorsement contracts alone probably exceed the sale price. So, the entire kit and caboodle wasn't worth as much as they are paying the pros who endorse the equipment? Infrastructure, personnel, inventory, endorsement liabilities... Hopefully, the investment group didn't buy a pig-in-a-poke and it disappears.
Ashworth has pretty well disappeared with Adidas pushing their own name on clothing. I could see Ashworth coming back to complement the hard goods lines. Adams is the same as dead weight anyway. Wonder if the new owners will continue the one-per-week new driver release schedules?? It's always been a competition to see whether TMAG can release a new driver as often as WBL buys a new driver. WBL might begin winning that race!!!

HEY!!!

 

[IrishGolfer]

Good morning TaylorMade!

I'm planning to dissolve the company, asset strip and gain access to cash in the company's pension plan. What? But that's what I do!

And no, I don't play golf or know who Rory McIlroy is!

Greed is good!

 

[jhmeg2]

Taylor Made, Adams, and Ashworth went as a package deal for $425 million. To me, that sounds like 'chicken feed'... pocket change... for what I would have expected. The endorsement contracts alone probably exceed the sale price. So, the entire kit and caboodle wasn't worth as much as they are paying the pros who endorse the equipment? Infrastructure, personnel, inventory, endorsement liabilities... Hopefully, the investment group didn't buy a pig-in-a-poke and it disappears.
Ashworth has pretty well disappeared with Adidas pushing their own name on clothing. I could see Ashworth coming back to complement the hard goods lines. Adams is the same as dead weight anyway. Wonder if the new owners will continue the one-per-week new driver release schedules?? It's always been a competition to see whether TMAG can release a new driver as often as WBL buys a new driver. WBL might begin winning that race!!!

WBL will buy a new driver before the ink is dry on the deal.