Adidas Group announced Wednesday that it will look to sell its various golf brands, a group that includes TaylorMade, Adams and Ashworth.
Adidas had hinted at possibly selling some of its golf brands last year. The work force at TaylorMade was cut by 14 percent in November, and in March the company announced plans to cutback on product launches.
The most recent news, which accompanied the announcement of Adidas' overall first-quarter earnings, made the company's intentions clear.
"Earlier this morning, the company announced that it has concluded its analysis of the future options for the company's golf business," the announcement read. "As a result, the executive board decided to enter into concrete negotiations with interested parties aimed at a divestiture of parts of the company's golf division.
"Going forward, the Group intends to focus its efforts in this market segment on further strengthening its position as a leading provider of innovative golf footwear and apparel through the Adidas Golf brand. At the same time, the company will actively seek a buyer for the remainder of its golf business, which mainly consists of the TaylorMade brand, a market leader in golf equipment, as well as the Adams and Ashworth brands."
Adidas began exploring possible sales options last year when Q2 2015 earnings for TaylorMade fell by 26 percent. At the time, Adidas Group CEO Herbert Hainer admitted that an ambitious schedule of new product launches had not performed as expected, but he still sees a bright future for Adidas' largest golf brand.
"TaylorMade is a very viable business. However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market," Hainer said Wednesday. "With its leadership position in the industry and the turnaround plan gaining traction ... I am convinced that TaylorMade offers attractive growth opportunities in the future."