TaylorMade Golf is changing hands for the second time in the last four years after current owner KPS Capital Partners announced that it has signed a ‘definitive agreement to sell the company to Centroid Investment Partners, a Korea-based private equity firm.
Financial terms of the deal have not been disclosed, although it is understood that KPS, who bought TaylorMade in 2017 for $425 million, had valued the company at $2 billion, or nearly five times its initial investment.
TaylorMade currently enjoys no.1 or no.2 market share positions in golf clubs, balls, bags and accessories, and is represented on tour by a wide range of global stars, including Dustin Johnson, Tiger Woods, Rory McIlroy, Tommy Fleetwood and Collin Morikawa.
Speaking about the deal, David Abeles, TaylorMade’s Chief Executive Officer, said: “This transaction is a very important milestone as we continue to build upon our brand’s momentum around the world. Not surprisingly, the sale process for TaylorMade generated tremendous interest from a wide range of prospective buyers and resulted in an agreement that reflects the outstanding performance of our business today, as well as the outlook for the future.”
He added: “Our partnership with KPS has been extraordinary It has been inspiring and incredibly productive to work with the team across the firm. From the beginning, KPS had the vision to recognize the strength and potential of the TaylorMade brand and business. Under KPS’s ownership, TaylorMade has become a far better company by investing in our operations, product technology pathways, product development processes and, importantly, in our people. TaylorMade Golf has never been better positioned for future growth than we are today.”
David Shapiro, co-founder of KPS, said: “KPS recognised the value of the TaylorMade brand, its cutting-edge product portfolio, the talent of its world-class management team and employees and the opportunity to align the company’s cost structure with the market realities. We congratulate the entire organisation for their tremendous dedication to the brand and their passion for the game of golf. TaylorMade is well positioned for continued growth and is poised for accelerated growth in the important Korean market, as well as the rest of Asia, under Centroid’s ownership.”
Prior to Centroid’s acquisition of TaylorMade, the largest deal in the history of the golf equipment industry was Fila Korea’s purchase of Acushnet for $1.225 billion in 2011.