Adidas seeks to sell TaylorMade golf division
TaylorMade-Adidas Golf, based in Carlsbad, is on the auction block.
German sports gear giant Adidas, parent company of TaylorMade, said Wednesday that it plans to sell off its TaylorMade, Ashworth and Adams golf brands and operations as U.S. participation in golf remains stagnant.
“TaylorMade is a very viable business,” Adidas Chief Executive Herbert Hainer said in a statement. “However, we decided now is the time to focus even more on our core strength in the athletic footwear and apparel market.”
Four years ago, TaylorMade-Adidas Golf was the hottest club maker in the business. Under former Chief Executive Mark King, sales reached $1.7 billion on the strength of its Rocketballz drivers and irons. In 2014, King left TaylorMade, and its sales plunged 28% that year.
Last year, revenue fell 13% to $1.04 billion, excluding currency fluctuations. TaylorMade cut its global workforce by 15%. A TaylorMade spokesman declined to say how many workers the company employs in Carlsbad, but it’s believed to be several hundred.
On Wednesday, Adidas said TaylorMade’s first-quarter sales slipped 1% from a year earlier. Adidas’ overall revenue was up 22%.
“You could see from the first quarter that everything is doing well except for golf,” said Terry McAndrew, publisher of industry newsletter Web Street Golf Report. “I am not surprised they want to sell. The question is what is TaylorMade worth? And who would buy it?”
Potential suitors include private equity firms, as well as other sport equipment and apparel firms outside golf.
