Korean investment fund Centroid Investment Partners recently announced the acquisition of the American golf brand from KPS Capital Partners.
“TaylorMade is an investment to change the look of Centroid. This is an iconic brand in Korea and Asia, leading or second in many product segments in the US. We are very excited by the opportunity.” business association from TaylorMade in a favorable situation today “, the buyer’s announcement on May 11 quoted CEO Jeong Jinhyeok.
Through this transaction, TaylorMade has changed hands for the second time in four years. KPS bought it from the Adidas Group for $ 425 million in 2017. February 2021, sheet New York Times disclosed KPS is selling TaylorMade at two billion USD.
In the latest deal, both businesses in the process did not disclose financial information. However, the daily newspaper Korea EconomicAccording to private sources, it is estimated that Centroid spent $ 1.6 billion to own TaylorMade.
And so, the international golf industry recognizes two major brands belonging to Korean investors. Before Centroid, Fila Korea Ltd bought Acushnet – Titleist and Footjoy’s parent corporation for $ 1.3 billion in 2011.
According to the market research company Golf Datatech, retail sales of golf equipment in the US still reached 2.81 billion USD with a growth rate of 10.1%. This country ranks No. 1 in the world, Japan second and South Korea closed the top 3 in terms of the size of the golf market.
Sheet Pulse TaylorMade native said total revenue of about $ 100 million in 2020. This business result has not been deducted taxes, interest rates and slippage. The media unit emphasized that a doing business would be priced 14 to 15 times its current status.
TaylorMade owns a team of brand ambassadors including many PGA and LPGA Tour stars such as Tiger Woods, world number one Dustin Johnson, Rory McIlroy, Collin Morikawa and Park Sung Hyun.
Centroid was founded in 2015. This fund has resonated among Korean investors through strategic acquisitions, including deals with Kolon Yarn, Woongjin Booxen, and more recently 171. million USD for the South Springs luxury golf course in the suburbs of Seoul.
Centroid invests in multiple industries, starting to focus on golf since 2018. When buying TaylorMade, they are strongly supported by strategic investors, especially golf and fashion.
As for KPS, it is common to push TaylorMade out of the portfolio. Because they specialize in buying, then nurturing and selling for a profit in a 5-7 year cycle. Previously, they bought Genesee – a struggling beer company, later sold it for $ 388 million – twice as much as when it bought.
In 1979, Gary Adams founded TaylorMade, after mortgaging his home to borrow $ 24,000 and then renting a workshop with three employees. At that time, Adams sold only one product he invented himself – a steel-rolled wooden stick with a 12-degree trellis face. He owned the business exclusively until 1984 and then sold it to Salomon SA. This investor and TaylorMade became an asset to Adidas in 1997. From $ 47,000 in start-up sales, TaylorMade made $ 1 billion in sales for the first time in 2006.
Quoc Huy synthetic
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