TaylorMade not up to par, adidas looking for buyer
GERMAN sportswear firm adidas said yesterday it had decided to seek a buyer for its main golf brand TaylorMade, which has been struggling as the sport loses popularity, helping it to focus on its core brands.
The company appointed investment bank Guggenheim Partners last August to help with a strategic review of its golf business, which comprises TaylorMade as well as the smaller Adams and Ashworth brands, which it already said then it wanted to sell.
It will focus on selling golf footwear and clothing under its main adidas brand and enter into negotiations to sell TaylorMade, Adams and Ashworth.
Adidas released strong headline quarterly figures last week and raised its 2016 outlook.
It said sales in North America, greater China and western Europe rose 31 per cent, 30 per cent and 26 per cent, respectively.
However, sales at its golf business fell 1 per cent after stripping out currency effects to 275 million euros (S$427 million) - about 6 per cent of group sales.
Growth at TaylorMade and adidas golf failed to make up for falls at Ashworth and Adams.