Wednesday May 12, 2021 – TaylorMade is being acquired for the 2nd time in 4-years by Korean-based private equity firm, Centroid Investment Partners.
Rumored to be between $1.5 – $2 billion, this is the largest deal in golf equipment history…which makes sense given TaylorMade’s leading market position in just about every major product category and golf’s global growth over the past 15-months.
While a South Korea based firm might seem strange at first glance, Korea represents the 3rd largest golf market in the world behind 🇺🇸 and 🇯🇵.
And despite control changing hands, I would guess from an operational standpoint, not much will change. TaylorMade headquarters will remain in Carlsbad, CA and they’ll continue to make kickass products.
TaylorMade was originally acquired by KPS Capital Partners from Adidas 4-years ago for $425 million. A roughly 4-5x ROI in 4-years? Not bad.
It’s wild how giant global retailers, Nike and Adidas, have liquidated their equipment business units in recent years. However, if you want to look at it purely from a P&L point of view, it makes sense given the astronomical R&D expenses required of the space.
…they’re just that much more efficient in the apparel game.
If it ain’t broke, don’t fix it.