Fila Korea Buying Acushnet Golf Unit From Fortune Brands Inc.

A group led by Fila Korea is buying Fortune Brands' golf business, including Titleist, for $1.23B, beating out competition from private equity fund Blackstone Group, among others. The deal gave Fila Korea "rights to the worldwide use of footwear and apparel brands of the parent firm." Fortune said that it expects net proceeds of about $1.1B from the sale "after taxes and expenses." The deal is "likely to close in the summer" (REUTERS, 5/20).

The Acushnet golf unit, which also makes FootJoy shoes and gloves, is the "world's largest golf company as measured by earnings." The division gets "about 45% of its revenue from outside the U.S. and has grown rapidly in South Korea." It was "expected to attract interest from golf and sporting-goods companies in Asia as well as private-equity firms." In addition to Fila Korea, the investor group also includes the National Pension Service of Korea and government-owned Korea Development Bank (DOW JONES NEWSWIRES, 5/20).