5.23.11
07fila korea buys acushnet
the largest purchase of a golf equipment company
is nearing completion with the may 20 news that
fila korea ltd. and mirae asset private equity had
purchased the acushnet company (comprised of
the titleist, footJoy and pinnacle brands) for $1.225
billion. regulatory approval awaits, but this transaction is essentially done. losers in the deal are golf
companies that bid on acushnet (among those
reported to have had interest were adidas, nike
and sumitomo, which owns cleveland/srixon).
acquiring the company would have bolstered their
businesses while taking a formidable competitor
out of the mix. both principles in the deal, however,
appear to be winners. acushnet is a cash cow, and
fila and mirae have the financial wherewithal to
wait for the return on their investment. acushnet,
which remains a standalone operation in fairhaven,
mass., gains, too, as it now has the ability to expand
in asia where golf is growing at a rapid rate. acushnet chairman and ceo wally uihlein also emerges
in good stead, having helped engineer a deal that
keeps intact the company and brands he has nurtured for 20-plus years, allowing him to remain in
charge and position the company for growth. “if i
could have achieved anything when i started here, it
would be to get the company in a position where it
can sustain the brands, and today that is dictated by
the globalization of golf,” said uihlein. “companies
that are u.s.-centric will be roadkill on tomorrow’s
scorecard.” —E. M.J.
michael fein/bloomberg Via getty images
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