PARIS — German sporting goods maker Adidas AG and American golf equipment company Adams Golf, Inc. announced today that the TaylorMade-Adidas Golf subsidiary has entered into a definitive agreement to buy all outstanding shares of Adams Golf for an estimated $70 million.
At $10.80 per share in cash, the transaction represents a premium of about 71 percent to the share price prior to the announcement by Adams Golf on Jan. 4 that it had retained Morgan Stanley to explore strategic alternatives for the group.
“This acquisition reflects our commitment to continued growth in the golf category,” Adidas chief executive officer Herbert Hainer stated. “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.”
The board of directors of Adams Golf has unanimously approved the transaction. Investors owning around 35 percent of outstanding shares in the company have pledged to vote their shares in favor of the acquisition. The deal is subject to customary conditions and regulatory approvals, and must also be approved by Adams Gold shareholders. It is expected to close mid-year.
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