TaylorMade-adidas finalizes Ashworth acquisition deal

In a deal that puts TaylorMade-adidas in the unusual position of manufacturing products for one of its biggest competitors, the German-owned company has finalized a deal to buy U.S. apparel-maker Ashworth Inc.

The reported purchase price of $26.5 million and assumption of $46.3 million in debt gives TaylorMade-adidas control of Ashworth, which focuses on traditional lifestyle golf apparel. Ashworth currently has a licensing agreement with Callaway Golf – TaylorMade’s biggest rival in the equipment market -- to manufacture and sell Callaway-brand shirts.

Callaway officials, however, have indicated they will seek a new licensing agreement with a different manufacturer.

Adidas officials said they believe the two brands will complement one another. Ashworth’s fashion approach is expected to provide a contrast with adidas’ more sporty, performance-oriented product line.

They said they plan to reinvigorate the Ashworth brand, which has been plagued in recent years by management turnover and financial difficulties. 

Comments

Am interested in latest info in the golf world as my business in Portugal is golf furthermore thhis article regarding the Adidas take over of AShworth affects me personally since as a recently terminated Ashworth agent for 14 years in Portugal I am experiencing huge difficulties in receiving my compensation for termination and am now entering into a legal dispute. My concerns are as to how this acquisition will affect the settlement due to me according to European Agency Law. I am unable to reach an agreement with the existing European Ashworth management team to pay my compensation , 1 year after being nominated Best European Sales Agent in 2007!!

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