The Adidas Group and Adams Golf jointly announced Monday that TaylorMade-Adidas Golf has entered into an agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $ 70 million.
'This acquisition reflects our commitment to continued growth in the golf category,' said Adidas Group CEO Herbert Hainer. 'The proposed combination of Adams Golf and TaylorMade-Adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement as well as senior and women golfers with TaylorMade-Adidas Golf's focus on the younger and the low-to-mid handicap golfer.'
Said TMAG president and CEO Mark King: 'We are very excited to team up with Adams Golf, whose management team we have respected for many years. Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal.'
Said Barney Adams, interim CEO of Adams Golf: 'This merger provides strong opportunities for our employees, suppliers and partners. The Adams Golf brand will fit nicely into TaylorMade-Adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources. We are also excited that TaylorMade-Adidas Golf has decided to maintain Adams Golf's headquarters in Plano, Texas.'
The Adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.