TaylorMade-adidas Set To Buy Adams Golf For $70M
TaylorMade-adidas Golf today announced plans to acquire all of the outstanding shares of Adams Golf in a deal valued at about $70M. That represents a premium of approximately 71% to the share price prior to Adams' announcement in January that it was examining strategic alternatives. The Adams Golf BOD has unanimously approved the transaction, and the deal is expected to close in mid-2012. TaylorMade-adidas has opted to keep Adams' HQs in Plano, Texas (TaylorMade-adidas Golf). Golf Channel’s Erik Kuselias said of TaylorMade purchasing Adams Golf, “adidas group gets a little bigger.” Golf Channel’s Gary Williams, on TaylorMade's purchase, “It is very good for the consumer. Adams Golf, their niche and their strength is the market segment for hybrids and if you add that category to TaylorMade which makes great irons … you are adding to a portfolio that is now incredibly well-rounded” ("Morning Drive," Golf Channel, 3/19).