Adidas acquires Adams Golf

Adidas is once again reinforcing its commitment in the golf category. Through its ‘TaylorMade-Adidas Golf’ business segment, the German sporting goods manufacturer has entered into an agreement to buy US golf brand Adams Golf. The transaction value is estimated around 70 million dollars, which represents a premium of approximately 71% to the share price prior to Adams Golf's announcement that it was examining strategic alternatives on January 4, 2012.

Adams Golf is known for its technological innovations in the golf industry, especially when it comes to golf clubs. The company has also developed golf brands such as Yes! Putters, Women’s Golf Unlimited, Lady Fairway and Square 2. In 2011, its net sales were approximately 97 million dollars (+12%) and its net income was over 14 million.

Last year, the Adidas group’s golf segment saw a sales increase of 16% at constant exchange rate. For the first time in the German group’s history, sales from its golf division accounted for more than 1 billion euros of its total turnover. “Our success in golf will not just be limited to hard goods. In performance golf apparel, we are adding an exciting new Fashion Performance line," said Adidas Group CEO Herbert Hainer.

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