Adams becomes part of TaylorMade-Adidas Golf

Adams Golf, which made its name through innovative designs and precision manufacturing techniques, will retain its name as well as Plano address. Company officials said Monday that plans will be to maintain its 180 employees and it is operating processes.

For us, it will be business as always, said founder and interim CEO Barney Adams, 73. But we'll get the resources of an larger company.

The money deal is at the mercy of shareholder and regulatory approval. As proposed, it would pay $10.80 per outstanding share of Adams Golf common stock, a 70 % premium over the share price on Jan. 4, once the company announced that it was reviewing strategic ping g15 irons alternatives.

The sale also comes just three weeks after Chip Brewer, Adams Golf's leader since 2002, left the company to assume the CEO spot at Callaway Golf, a chief competitor.

The offer will broaden TaylorMade's range of products and solidify its position as being a top golf clubs seller. It will likewise gain Adams' concentrate on game-improving design changes, the company's hallmark.

TaylorMade-Adidas Golf is based in Carlsbad, Calif., which is a division of Adidas AG of Germany. It sells clubs, balls and clothing underneath the TaylorMade, Adidas Golf and Ashworth brands. It had sales of $1.3 billion this year.

The deal marks a whole new era for Adams Golf, which posted an income of $14.5 million on revenue of $96.5 million taylormade burner superfast 2.0 driver next year, compared with a $5 million profit on revenue of $86.Two million really.

Founded later, the organization shot to popularity with all the continuing development of the Tight Lies fairway wood in 1995 and also the explosive growth that followed. The Tight Lies turned the contours in the conventional wood club the wrong way up, passing on a low center of gravity and extra punch off of the tee.

The business went public in 1998 and possesses enjoyed a track record of innovation and quality. The company's Speedline clubs are widely-used by pro golfers Tom Watson, Kenny Perry and Aaron Baddeley. Additionally, it sells the concept and Square 2 brands, and the like.

But that vaunted performance has not been par to the course to the Adams Golf stock. Opening at a lot more than $70 in 1998, it has remained below $20 since 2000 and has in most cases hovered between $5 and $7 in recent years. It absolutely was trading at $6.81 a few months ago once the company said hello would look for buyers.

Their earnings are discount golf clubs actually up and down, but accelerated in days gone by the vast majority, said Rich Segarra, director of research for Ford Investor Services, which issued a powerful buy recommendation to the stock recording.

Adams Golf said its board of directors unanimously approved the sale. Inside shareholders, including company executives and board members who collectively own 35 % of remarkable shares, have also signed off into it.