Adidas to sell most of its golf division

Emma Williams
By Emma Williams May 4, 2016 11:55

One of the biggest golf companies in the world, Adidas, which owns TaylorMade and Ashworth among other brands, has said it is selling most of its golf unit following a drop in participation in the game, especially in the USA.

adidas jalexartis

Flickr / Jalexartis

Generally Adidas is performing strongly at the moment but its golf side, seemingly because in the USA, as in the UK, golf participation among adult men has been falling for about 15 years and neither country has been able to make up the loss by attracting more adult women to the game, has not kept up pace with the rest of the brand.

Total Adidas brand sales rose 26 percent in just the first quarter of 2016, but sales at its golf business fell one percent, with growth at TaylorMade and Adidas Golf failing to make up for falls at Ashworth and Adams. In 2015, golf unit sales fell 13 percent.

Adidas bought the TaylorMade brand in 1997 along with Salomon, developing it into the world’s biggest golf supplier. It acquired Ashworth in 2008 and Adams four years later.

The sportswear maker has said it will keep its Adidas Golf shoe and apparel business but is now seeking a purchaser for the TaylorMade clubs division and Adams and Ashworth clothing brands.

“TaylorMade is a very viable business,” chief executive Herbert Hainer said.

“We decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market.”

taylormade becky lai

Flickr / Becky Lai

Adidas has been reviewing the golf operations since last year and hired Guggenheim Partners in August to look at options.

The German company said it will start talking with potential buyers of the business but a final decision to sell it hinges on clearance from its supervisory board.

Other major companies in the golf market include Nike, Kering’s Puma and Callaway Golf.

 

Emma Williams
By Emma Williams May 4, 2016 11:55
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