KPS Capital Companions, LP introduced that it has signed a definitive settlement to promote its portfolio firm, TaylorMade Golf Firm, Inc. to Centroid Funding Companions (“Centroid”), a Seoul, Korea-based personal fairness agency. The monetary phrases of the transaction weren’t disclosed.
In 2017, KPS acquired TaylorMade from Adidas for $425 million.
TaylorMade is a designer and producer of golf golf equipment, balls, luggage, and equipment with the No. 1 and a pair of market positions in most of its key merchandise and geographies. The model is represented by Skilled Tour athletes together with World No 1 Dustin Johnson, Tiger Woods, Rory McIlroy, Tommy Fleetwood, Collin Morikawa, Rickie Fowler, Matthew Wolff, Sung Hyun Park, Charley Hull, Maria Fassi, and Sierra Brooks.
KPS acquired TaylorMade in 2017 from Adidas AG in a posh world company carve-out transaction involving the separation of shared services, workers, distribution infrastructure, and materials industrial preparations.
TaylorMade was remodeled underneath KPS’ possession into an impartial golf gear firm that achieved market management in key product classes and skilled the best development charges within the business, based on the assertion from KPS.
TaylorMade invested closely in gear applied sciences, launched a collection of recent merchandise, achieved market share development in golf balls, constructed manufacturing and distribution services, and refocused its advertising and marketing technique, together with the build-out of a digital platform. Because of these initiatives, the corporate progressed from producing materials working losses between 2015/17 to development in profitability annually underneath KPS possession.
David Shapiro, co-founder and co-managing associate of KPS said, “TaylorMade demonstrates KPS’ capacity to see worth the place others don’t, purchase proper and make companies higher. KPS acknowledged the worth of the enduring TaylorMade model, its cutting-edge product portfolio, the expertise of its world-class administration staff and workers and the chance to align the corporate’s price construction with the market realities.”
Shapiro added, “We congratulate and thank CEO David Abeles, TaylorMade’s administration staff and your entire group for his or her large dedication to the model and Firm and their ardour for the sport of golf. The corporate is well-positioned for continued development and business management and is poised for accelerated development within the vital Korean market in addition to the remainder of Asia underneath Centroid’s possession.”
David Abeles, CEO, TaylorMade, added, “Our partnership with KPS has been extraordinary. It has been inspiring and extremely productive to work with the staff throughout the agency. From the start, KPS had the imaginative and prescient to acknowledge the energy and potential of the TaylorMade model and enterprise. Below KPS’s possession, TaylorMade has change into a much better firm by investing in our operations, product expertise pathways, product improvement processes, and, importantly, in our individuals. TaylorMade has by no means been higher positioned for future development than we’re immediately.”
Paul Weiss, Rifkind, Wharton & Garrison LLP served as authorized counsel and Morgan Stanley and Allen & Co. served as monetary advisors to KPS and TaylorMade. Completion of the transaction is topic to customary closing situations and approvals.
Photograph courtesy TaylorMade