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TaylorMade Sold Amid Surge In Demand For Golf Supplies

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TaylorMade Sold Amid Surge In Demand For Golf Supplies

One of the most popular sports during the COVID-19 pandemic and immediately after was golf. The sport that requires minimal person-to-person contact and can be done through social distancing saw a surge in demand not seen since 1997.

A transaction in the industry shows strength in demand and valuation for golfing companies.

What Happened: KPS Capital Partners is selling TaylorMade Golf to Centroid Investment Partners for a reported $1.5 billion to $2 billion value, according to Golf Digest.

TaylorMade is a leading global design and manufacturer of golf clubs, balls, bags and accessories.

KPS acquired TaylorMade Golf in 2017 from adidas AG (OTC: ADDYY) for $425 million. Since then, KPS turned a company that had operating losses from 2015 to 2017 into a profitable company. KPS built new manufacturing and distribution and focused on growing market share after the acquisition.

Related Link: Topgolf Recovering Ahead Of Plan, Callaway Capitalizing On Golf Demand

Why It’s Important: TaylorMade holds a number one or number two market share position in its key product categories and key geographic locations.

TaylorMade is a well-known golf brand and has endorsement deals with some of the most recognizable names in the sport like Dustin Johnson, Tiger Woods and Rory McIlroy.

The valuation of TaylorMade could have an impact on Callaway Golf (NYSE: ELY), a golf apparel company and Acushnet Holdings Corp (NYSE: GOLF), the owner of Titleist and FootJoy.

 

Related Articles (ELY + ADDYY)

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Posted-In: Dustin Johnson Golf Stocks KPS Capital Partners Rory McIlroyM&A News Sports General Best of Benzinga

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