TaylorMade Golf Company, Inc. announced today that its current financial sponsor, KPS Capital Partners has signed a definitive agreement, through an affiliate, to sell TaylorMade Golf Company, Inc., to Centroid Investment Partners, a Seoul, Korea based private equity firm. Financial terms of the transaction were not disclosed.
Established in 1979, TaylorMade is a leading global manufacturer of golf equipment, balls, bags and accessories with a #1 or #2 market position in most of its key categories and markets. For over 40 years, TaylorMade has brought innovative, high performance product technologies to golfers worldwide and has an unrivaled portfolio of athletes across the global tours including world #1 Dustin Johnson, Tiger Woods, Rory McIlroy, Tommy Fleetwood, Collin Morikawa, Rickie Fowler, Matthew Wolff, SH Park, Charley Hull, Maria Fassi and Sierra Brooks.
After KPS acquired TaylorMade in 2017 from adidas, the company has transformed into a fully independent, golf equipment and golf ball company and has experienced the highest key product and market growth rates in the industry. TaylorMade invested heavily in industry leading technologies, introduced revolutionary performance advances in equipment, achieved significant market share growth in golf balls, built new manufacturing and distribution facilities, and successfully refocused its marketing strategy, including the expansive build-out of one of the most advanced digital platforms in the business.
Since 2017, TaylorMade has experienced substantial growth in revenue and profitability worldwide and is positioned in 2021 to have the strongest year in its history under the leadership of David Abeles, CEO of TaylorMade Golf, and its wider management team.
This transaction is a very important milestone as we continue to build upon our brand’s momentum around the world. Not surprisingly, the sale process for TaylorMade generated tremendous interest from a wide range of prospective buyers and resulted in an agreement that reflects the outstanding performance of our business today, as well as the outlook for the future.
David Abeles, Chief Executive Officer, TaylorMade Golf
Our partnership with KPS has been extraordinary. It has been inspiring and incredibly productive to work with the team across the firm. From the beginning, KPS had the vision to recognize the strength and potential of the TaylorMade brand and business. Under KPS’s ownership, TaylorMade has become a far better company by investing in our operations, product technology pathways, product development processes and, importantly, in our people. TaylorMade Golf has never been better positioned for future growth than we are today.
David Abeles, Chief Executive Officer, TaylorMade Golf
TaylorMade Golf is a transformational investment for Centroid. We are very excited to have the opportunity to invest in a global leader in golf. The industry is currently experiencing high demand, increased participation with strong long-term opportunities around the world. TaylorMade is an iconic brand with continued momentum across the key golf equipment categories and regions, especially the Korean and wider Asian markets. We are equally excited to work with CEO David Abeles and his exceptional senior management team to support continued growth and success.
Jinhyeok Jeong, founder and CEO of Centroid Investment Partners
TaylorMade demonstrates KPS’ ability to see value where others do not, to buy right and make businesses better. KPS recognized the value of the iconic TaylorMade brand, its cutting-edge product portfolio, the talent of its world-class management team and employees and the opportunity to align the Company’s growth strategies with global market opportunities.
David Shapiro, co-founder and co-managing Partner of KPS
Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Morgan Stanley & Co. LLC and Allen & Co. LLC served as financial advisors to TaylorMade. Completion of the transaction is subject to customary closing conditions and approvals.
About TaylorMade Golf
Headquartered in Carlsbad, California, TaylorMade Golf is a leading manufacturer of high-performance golf equipment, golf balls and accessories with industry-leading innovative products like SIM2 metalwoods, SIM2 irons, P Series irons, TP5/TP5X golf balls and Spider putters. A major force across the world’s professional tours, TaylorMade has an unrivaled athlete portfolio that includes Tiger Woods, Dustin Johnson, Rory McIlroy, Tommy Fleetwood, Collin Morikawa, Rickie Fowler, Matthew Wolff, SH Park, Charley Hull, Maria Fassi and Sierra Brooks.
About Centroid Investment Partners LC
Established in 2015, Centroid Investment Partners LC (“Centroid”) is a Seoul-based private equity firm. Since its inception, Centroid has established a proven track record of strategic buyout transactions in Korea across a diverse set of industries, with its most recent purchases of the South Springs Country Club, Kolon Advance Fiber, and Woongjin Booxen. Centroid creates value for its investor partners by strategically transforming companies to maximize profitability and competitiveness, while working closely with management and its diverse partners and professionals to advise on strategic growth.
About KPS Capital Partners, LP
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with over $12.3 billion of assets under management (as of December 31, 2020). For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.6 billion, operate 159 manufacturing facilities in 22 countries, and have approximately 34,000 employees, directly and through joint ventures worldwide. The KPS investment strategy and portfolio are described in detail at www.KPS fund.com.
We congratulate and thank CEO David Abeles, TaylorMade’s management team and the entire organization for their tremendous dedication to the brand and Company and their passion for the game of golf. The Company is well positioned for continued growth and industry leadership and is poised for accelerated growth in the important Korean market as well as the rest of Asia under Centroid’s ownership.
David Shapiro, co-founder and co-managing Partner of KPS