It had been rumored for a few weeks now, but it became official today: TaylorMade-Adidas Golf has agreed to purchase apparel manufacturer Ashworth in a transaction valued at $72.8 million.
Ashworth shares are being purchased for $1.90 in cash and the sale will mean TMAG will assume $46.3 million of the Ashworth's debt. The acquisition sets up TMAG as a new golf mega-brand with merchandise that can satisfy on- and off-course golf shops around the globe. Adding Ashworth also gains TMAG entree to resorts and private clubs that eschew active wear for lifestyle sportswear, trumping rival Nike Golf.
"We are excited to bring Ashworth alongside our industry-leading TaylorMade and Adidas Golf brands. TaylorMade-adidas Golf's mission is to be the best performance golf company in the world and adding Ashworth is another important step in achieving that goal," Mark King, president and CEO of
TaylorMade-Adidas Golf, said in a written statement.
The merger of the Carlsbad, Calif.-based companies should be completed by the end of 2008.
-- Annmarie Dodd