Ashworth to be bought by Adidas golf divisionTuesday, 14 October 2008
TaylorMade-Adidas Golf, the golf division of the Adidas Group, is to acquire all of the outstanding shares of the golf-inspired sportswear designer Ashworth Inc. in a move to become the market leader in golf apparel. The transaction, which has been approved by Ashworth's board of directors, is to buy all of the outstanding shares for $1.90 per share in cash, or $72.8. The deal includes the assumption of $46.3 million of Ashworth debt and is expected to close in the fourth quarter of 2008.
The proposed acquisition will enable the company to widen its product range, strengthen its distribution platform and extend its marketing presence. "Ashworth is a well-established, authentic golf apparel brand with a strong heritage and represents an excellent addition to TaylorMade and Adidas Golf," said Adidas AG chairman and chief executive officer Herbert Hainer. "This acquisition underscores our commitment to continued growth in the golf category."
Allen Fletcher, chief executive officer of Ashworth, added, "The Ashworth brand fits perfectly into TaylorMade-Adidas Golf's line-up of brands and together we will be able to increase efficiency and drive the golf apparel business going forward, leveraging a broad set of resources."