Koreans Snap Up TaylorMade Golf!
The golf crazy nation of South Korea is at it again. This time around, it has bought out TaylorMade Golf, arguably the most winningest brand in the game of golf.
The current owners of TaylorMade Golf, KPS Capital Partners have struck a definitive agreement through an affiliate to sell the club maker to the South Korean-based private equity firm Centroid Investment Partners.
Financial terms were not disclosed, but informed sources said that the company was pitched at an asking price of US$2 billion.
KPS bought TaylorMade – established in 1979 – from Adidas in 2017 for US$425 million. Since that time, golf has been experiencing a boom in North America and retail sales of golf equipment is said to have produced US$2.81 billion in revenue in 2020, which was a 10.1-percent increase over 2019.
Commenting on the sales, David Abeles, President and CEO of TaylorMade said, “This transaction is a very important milestone as we continue to build upon our brand’s momentum around the world.” (Abeles pictured being interviewed by Asian Golf’s Mike Sebastian).
According to recent reports, TaylorMade said that it has experienced the highest growth within the industry in key products and total market since that 2017 sale made it an independent gear-focused company.
The new owner of TaylorMade Golf, Jinhyeok Jeong, founder and CEO of Centroid Investment Partners said. “We are very excited to have the opportunity to invest in a global leader in golf. The industry is currently experiencing high demand, increased participation with strong long-term opportunities around the world. TaylorMade is an iconic brand with continued momentum across the key golf equipment categories and regions, especially the Korean and wider Asian markets.”
Like TaylorMade Golf, Acushnet, the company that once owned Titleist, sold out in 2011 for US$1.23 billion to Fila Korea Ltd. and financial investors, primarily Korea-based Mirae Asset Private Equity.