"This acquisition reflects our commitment to continued growth in the golf category," said Herbert Hainer, CEO of adidas Group, TaylorMade's parent company. "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."
The acquisition by TaylorMade caps a whirlwind few weeks for Adams, which posted sales of $96.5 million in 2011. CEO Chip Brewer left Adams for Callaway Golf on Feb. 28 with company founder Barney Adams taking over as interim CEO.
The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines and the transaction is subject to standard closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. Those are expected to be mere formalities, however, and the transaction is expected to close mid-2012.
-- E. Michael Johnson