adidas Group considering sale of TaylorMade, Ashworth and Adams Golf
Equipment Golf Biz

adidas Group considering sale of TaylorMade, Ashworth and Adams Golf


SHARE THIS STORY

Adidas Group is considering getting out of golf altogether.

The German company has hired investment bank Guggenheim Partners and charged it with exploring the possible sale of some or all of its golf brands, including TaylorMade, Ashworth and Adams Golf. The company made the announcement Thursday morning as it announced disappointing second quarter earnings for its golf businesses. Chief Executive Herbert Hainer said the company had prioritized the sale of the Ashworth and Adams brands, but is now considering all options.

Adidas bought TaylorMade in 1997, eventually building it into the biggest company in the sport. In 2008, adidas acquired Ashworth for $72.8 million. The company purchased Adams Golf in 2012 for $70 million.



Golf sales declined 26 percent from a year ago, a worse percentage comparison to the first quarter. The company's new products have not been received well by golfers. These results continue a trend of lost market share. Total 2014 sales dropped 28 percent from $1.4 billion in 2013 to just about $1 billion.

TaylorMade CEO David Abeles, who returned to the company in February 2015 before assuming the chief executive position from the departed Ben Sharpe, continued a reorganization plan last month, laying off 6 percent of its global workforce. 

SUBSCRIBE & WIN A BRIDGESTONE GOLF BAG!

New subscribers to our weekly email newsletter in May will be entered to win a Bridgestone Golf Spring edition stand bag!

Rules and regulations: By submitting your email address, you agree to join both the Golf News Net and Bridgestone Golf email lists. To be eligible for our prizes, you must remain a subscriber on our list through the end of the contest month. If your email address disappears, it worked!


About the author

Golf News Net

Golf News Net

We use the Golf News Net byline sometimes just to change things up. But, it's one of us humans writing the story, we promise.

Sometimes we post sponsored content from this account, and it is labeled as such. We also occasionally include links to products and services from which we could make a small percentage of a sale through affiliate programs.

Add Comment

Click here to post a comment

GNN PLUS LOGIN