Adidas Sells Golf Businesses to Focus on Core Brands

FRANKFURT, Germany — Adidas AG said it sold its golf brands including TaylorMade to KPS Capital Partners LP as the sports footwear and apparel maker focuses on its namesake brand and Reebok.

TaylorMade, Adams Golf and Ashworth will be sold to KPS for $425 million via a newly formed affiliate of the private equity firm, Adidas and KPS said in separate statements Wednesday. The amount will be paid half in cash and half with a combination of a secured note and contingent considerations.

The world’s second largest sport apparel company is focusing on its core brands and already announced its intention to sell the golf companies by 2016. Adidas is outstripping its arch rival Nike Inc. in sales growth as it capitalises on a trend for retro fashions worn off the sport field.

“Our focus is clearly on our core competencies in footwear and apparel and on our two major brands Adidas and Reebok,” CEO Kasper Rorsted said in a statement.

Announcing the sale, Adidas reaffirmed its long term goal of raising net sales to €25-27 billion ($27.1-$29.3 billion) by 2020.

In a separate statement earlier Wednesday, Adidas announced the appointment of Gil Steyaert and Karen Parkin to the executive board as of May 12. Steyaert will be in charge of global operations, succeeding Glenn Bennett, while Parkin will be responsible for global human resources.

By Alessandro Speciale; editors: Paul Gordon, James Kraus and Eric Pfanner.