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Adidas has struck a deal worth $425m to sell its TaylorMade, Adams Golf and Ashworth golf brands to US private equity group KPS Capital Partners.
The world’s second largest sportswear group put the brands – which have struggled as golf declines in popularity – up for sale last year, and hired the boutique investment bank Guggenheim Partners to find a buyer.
Adidas said that around half the $425m would be paid in cash and the rest in a combination of secured note and contingent considerations. The German group will take a “high-double-digit to low-triple-digit million euro” charge on the sale.
However, it said that this would not change its forecast that it will make a net profit from continuing operations of between €1.2bn and €1.225bn this year.
Kasper Rorsted said that Adidas would now refocus on its core activties. “Within our long-term strategy ‘Creating the New’, our focus is clearly on our core competencies in footwear and apparel and on our two major brands adidas and Reebok,” he said.