TaylorMade-adidas Golf has strengthened its old on the metal woods segment of the equipment industry with its agreement to acquire Adams Golf for approximately $70 million – or $10.80 per share of outstanding Adams Golf stock.
Adams Golf’s board of directors announced earlier this year that it was examining “strategic alternatives,” meaning it was shopping the Plano, Texas based equipment company. The deal, expected to close the middle of this year, gives TMaG a broader market share, particularly in the average-player consumer market and Champions Tour and LPGA Tour where Adams Golf had a strong presence.
The two companies looked to heavily compete against each other this year in the fairway woods market, where TMaG has its new RBZ line and Adams has its new Speedline F12 line.
“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group Chief Executive Officer 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.”
Ironically, former Adams Golf President Chip Brewer recently was named president of TMaG rival Callaway Golf Company. TMaG and Callaway are each located in Carlsbad, Calif.
“We are very excited to team up with Adams Golf, whose management team we have respected for many years,” said 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, founder and 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.“