TaylorMade-adidas Golf Completes Purchase Of Ashworth

TaylorMade-adidas Golf has completed its purchase of Ashworth, as 74% of Ashworth's shareholders have "tendered their shares in favor of the merger" at a price of $1.90 per share in cash, or $26.5M, according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. TaylorMade also "assumed $46[M] in Ashworth debt." TaylorMade plans to "retain the Ashworth brand and operate Ashworth as a wholly owned subsidiary," and it will "focus sales at on-course pro shops." TaylorMade-adidas Golf Exec VP John Kawaja: "We plan to make use of all of our resources, including those of our parent company, the adidas Group, to reinvigorate the Ashworth brand." Freeman notes TaylorMade's offer last month was "below Ashworth's book value, and some analysts questioned whether a majority of shareholders would tender their stock at such a low price." Ashworth this year has posted $137.5M in sales, down 7% from the year-ago period. The company through September had lost $16M. adidas Golf already has its "own brand of golf shirts, which feature high-tech synthetic fabrics and sleek designs." Ashworth's "roomier shirts are known more as a cotton-based lifestyle brand" (SAN DIEGO UNION-TRIBUNE, 11/21).