TaylorMade Golf is reportedly up for sale by its owner, KPS Capital Partners, less than four years after purchasing the company in 2017 from adidas Group.
KPS Capital Partners bought TaylorMade Golf in 2017 for a reported $425 million, more than half of which was taking on TaylorMade-related debt and the rest being a cash transaction to acquire the company, along with the resuscitated Adams Golf and Ashworth. Now, with golf thriving amid the COVID-19 pandemic, the company has arguably never been for valuable. Relative to its peers trading on the stock exchanges, TaylorMade would value comparably to Titleist owner Acushnet, whose market capitalization is more than $3 billion, or Callaway Golf, whose market cap is $2.75 billion.
The Times reports TaylorMade could sell for north of $2 billion, which would mark a sales price nearly quintuple the purchase price. Relative to the up-front cash outlay, KPS would sell by nearly a factor of 10.
KPS has a track record of buying diminished assets and companies, turning them around and flipping them for a sizable profit. They've done the work at TaylorMade, cutting costs where deemed needed and streamlining operations. With golf suddenly as popular as it was in the mid-2000s, KPS has a valuable asset on its hands and is looking to find a buyer.