The parent company of TaylorMade-adidas, the adidas Group, announced on Monday morning that it has agreed to aquire all of the outstanding shares of Adams Golf at $10.80 per share. The total price for the purchase of the Plano, Texas, company will be approximately $70 million.
In a statement, Herbert Hainer, CEO of the adidas Group, said, "This acquisition reflects our commitment to continued growth in the golf category. The proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement as well as senior and women golfers with TaylorMade-adidas Golf’s focus on the younger and the low-to-mid handicap golfer."
Adams is best known to golfers as one of the leading brands of hybrid golf clubs and hybrid-iron sets designed for higher-handicap golfers.
According to the statement released by TaylorMade, the company plans to keep Adams in its current Texas headquarters.
In the statement, Barney Adams, interim CEO of Adams, said, "This merger provides strong opportunities for our employees, suppliers and partners. The Adams Golf brand will fit nicely into TaylorMade-adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources."
"We are very excited to team up with Adams Golf, whose management team we have respected for many years," commented Mark King, president and CEO of TaylorMade-adidas. "Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal."
The board of directors of Adams has unanimously approved the transaction, but TaylorMade said the deal is subject to regulatory approval and hopes to have it completed by mid-2012.