TaylorMade Golf has acquired South Korea-based golf-ball manufacturer Nassau Golf Co. Ltd., bolstering their supply chain and manufacturing capabilities at a time when ball-making resources are at a premium.
Terms of the deal were not disclosed by either company.
The deal creates a new entity called TM Golf Ball Korea, adding to their golf ball-manufacturing facilities, TM Golf Ball South Carolina in the United States and TM Golf Ball Taiwan, formed in 2019 as a partnership of TaylorMade and Foremost Golf Co. Nassau Golf Co. Ltd has been part of TaylorMade’s golf-ball supply chain for more than 15 years, making urethane- and ionomer-cover balls, as well as mantles for the TP5 and TP5X ball that is used in the South Carolina facility, which puts covers on those balls.
With the latest purchase, TaylorMade can realize efficiencies with this level of vertical integration, while simultaneously shutting out Nassau Golf customers that have long used the company to manufacturer their golf balls. Ultimately, this portfolio gives TaylorMade control over its manufacturing process, similar to other major players in the space.
As for Nassau Golf customers in the direct-to-consumer space, this deal could force them to find new, lower-grade manufacturers. That could mean delays and pricing increases as quality raw materials become more scarcely available and more brands jocket for less manufacturing capacity. It remains to be seen if such a freeze out happens and, if it does, how long it will take.
