South Korean private-equity firm signs deal to buy California-based equipment maker, which had been offered for a reported $2 billion
Announced: By Centroid, a South Korean private-equity firm, that is has signed an agreement to purchase TaylorMade Golf Co., according to a news release Tuesday. No purchase price was disclosed, but The New York Times reported earlier this year that KPS Capital Partners was asking $2 billion for the Carlsbad, Calif.-based equipment manufacturer. In a separate statement, TaylorMade confirmed the purchase agreement. KPS bought TaylorMade from athletic-wear maker Adidas in 2017 for $425 million. During the past year, TaylorMade and other manufacturers racked up big gains in sales of golf gear, according to Golf Datatech, as participation in the U.S. surged because of the pandemic-fueled desire for the open spaces. “Jinhyeok Jeong, the founder and CEO of Centroid Investment Partners, called the pending acquisition “a transformational investment” in the media release announcing the sale. “We are very excited to have the opportunity to invest in a global leader in golf,” Jeong said. “The industry is currently experiencing high demand, increased participation with strong long-term opportunities around the world. TaylorMade is an iconic brand with continued momentum across the key golf equipment categories and regions, especially the Korean and wider Asian markets.” TaylorMade CEO David Abeles is expected to remain as head of the golf company, according to the news releases. TaylorMade pays players such as world No. 1 Dustin Johnson and major champions Collin Morikawa, Rory McIlroy, Tiger Woods and other PGA Tour stars to play its equipment. The company also sponsors a number of LPGA players from around the world.
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