Adidas Will Sell Its Three Major Golf Brands.

According to the world clothing shoes and hats net,

Today announced the three golf courses of its TaylorMade (Telme), Adams Golf and Ashworth.

Sold to KPS Capital Partners, the total value is $425 million, about half of which will be paid in cash, and the rest will be cashed in collateralized bills and / or consideration.

KPS is a private Holdings Company in New York, which manages assets of about $5 billion 300 million in various industries.

The paction is subject to customary closing conditions and is expected to be completed by the end of 2017.

According to the paction, Adidas will enter a non operating loss of tens of millions to one hundred million euros, and will be included in the 2017 performance as part of the discontinuous business activities.

Founded in 1979, TaylorMade is a leading manufacturer of golf equipment. Adidas acquired TaylorMade in 1997 as part of its $1 billion 400 million acquisition of Salomon in French skiing brand, and acquired Ashworth and Adams in 2008 and 2012 respectively.

However, Adidas's golf business has been on the decline in recent years.

In 2016, sales were 892 million euros, down 1%, accounting for 5% of the group's sales. Compared with the 2012 high of 1 billion 340 million euros, it was reduced by nearly 1/3.

Last August, Adidas's biggest competitor.

Decided to withdraw from golf clubs and ball manufacturing business; a month later, the US Golf retailer Golfsmith filed for bankruptcy.

A day ago, TaylorMade just announced the signing of Rory McIlroy, the world's top second golfer. Lori McElroy.

Since Nike quit last year, Tiger Woods (Tiger Woods) and McElroy have chosen TaylorMade clubs in succession.

Its signing players include Sergio Garcia (Sergio Garcia), Jason Day (Jason Day), Dustin Johnson (Dustin Johnson) and Justin Ross (Justin Rose).

Adidas will still produce golf apparel, and Johnson and Garcia will continue to use the brand's clothing, hats, shoes and gloves.

Woods and Mike Roy and Nike still have endorsement contracts for clothing. Dai also signed similar contracts with Nike last year.

In the past, TaylorMade players usually used the same brand clubs and costumes, but after Adidas decided to sell golf related businesses, the situation changed.

"In our long-term strategy, Creating the New will focus on our core competitiveness, including footwear and clothing, as well as the two largest brands, Adidas and Reebok.

"Adidas CEO Kasper Rorsted said in a statement.

Although Adidas's 2016 annual report has explained in detail that the divestiture of golf equipment business has changed some details of the company's prospects this year, Adidas still expects to continue its operation and increase its net business income to 12-12.25 billion euros in 2017.

In addition, the strategic stripping of the three golf brands is also reflected in the long-term prospects of the company's renewal.

As announced in March 2017, Adidas's goal is to achieve net sales of 250-270 billion euros by 2020, with a profit margin of 11%.

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