The New York Times reported Tuesday that KPS Capital Partners wants to sell TaylorMade Golf, which it acquired in 2017 from Adidas for $425 million. The potential asking price could exceed $2 billion.
The Times reported in its DealBook that New York-based KPS has hired Morgan Stanley to run the sale of the golf equipment brand based in Carlsbad, California. Spokespeople for Morgan Stanley and KPS declined to comment to the Times on the report. No potential buyers were listed in the report.
TaylorMade is the sponsor for many noted PGA Tour players including Tiger Woods, Dustin Johnson and Rory McIlroy.
A possible sale would come on the heels of a strong year for golf. Analytics company Golf DataTech reported the sport’s recreational participation in the United States surged 13.9 percent in 2020 versus 2019 as players sought outdoor opportunities during the coronavirus pandemic.
Retail sales of golf equipment also surged in 2020, Golf Datatech reported, with $2.81 billion in revenue. That was a 10.1 percent increase over 2019. It gave 2020 the third-highest annual total since Golf Datatech began tracking the industry, trailing only $2.91 billion in 2008 and $2.87 billion in 2007.
“While the global pandemic wreaked havoc on many segments of our economy, the golf industry experienced a significant boost in rounds played and equipment sales,” John Krzynowek, a partner at Golf Datatech, said in a release announcing the surge in rounds played. “On the equipment side, sales increased by low single digits in both 2018 and 2019, but the double-digit gains in 2020 can only be attributed to the pandemic and golf being a respite for so many.”
The German-based Adidas sold the company to KPS to narrow its focus to soft goods and footwear in the golf retail space.
from Golfweek https://ift.tt/3cyztGZ