Titleist IPO Set For Next Week

[GolfSpy Barbajo]

This has been in the works for over a year now, but it looks like it'll happen next week.

 

Most surprising thing in the article?  Acushnet posting a $1Million loss last year.

 

2nd most surprising thing?  1,500 employees at a GLOVE FACTORY?

 

 

 

Mass. maker of Titleist golf equipment ready for $435 million IPO

By Dan Adams. Boston Globe

 

A new symbol will soon scroll across the New York Stock Exchange ticker: GOLF, representing Fairhaven, Mass.-based Acushnet Holdings Corp., maker of Titleist golf balls and other golf equipment and apparel.

 

The initial public offering next week — hinted at for more than a year â€” will peg the market value of Acushnet at around $1.7 billion. The offering is expected to raise roughly $435 million by selling 19.3 million shares at between $21 and $24 apiece. The company itself won't reap any of the proceeds, as the money will go to its investors.

 

Thanks to a series of related transactions in advance of the offering, the majority of voting shares will go to Fila Korea Ltd., which has owned Acushnet since 2011.

Acushnet operates golf-ball manufacturing plants in New Bedford and Dartmouth and said it employs about 5,200 full-time workers worldwide, including 1,500 at a glove factory in Thailand. Federal filings indicate the company lost $1 million last year on $1.5 billion in sales of products under the brands Titleist, FootJoy Golf Wear, and others. 

The IPO by a consumer goods company is unusual for Massachusetts, where life sciences firms and the occasional technology company comprise most public offerings. It also comes in a year that has seen a substantial reduction in the number of US IPOs — just 85 have priced so far this year, down from 170 last year and 275 in 2014, according to Renaissance Capital.

[PlaidJacket]

Ok, I'll take a stab at it...

I'm taking a pass in this deal. "The company itself won't reap any of the proceeds, as the money will go it's investors." (those investors are not you an me by the way.) So my unsophisticated analysis says.... if the company can't make money the old fashion way by actually selling things and making a profit; then float some stock and hope a bunch of saps by it. Then we'll (the current stake holders) make some money. Heh!

Aside from the Titleist brand golf clubs I can't see any compelling reason to buy their over-priced balls and gloves. Most if not all their apparel is over-priced as well. IMO. Keep in mind I'm not saying their products are not good. They are. However, there are balls, gloves, and clothing that are equal to if not superior to what Titleist offers. Again... IMHO. There is a huge premium to be paid when playing equipment and wearing clothing with the iconic Titleist logo printed on it. I also have a suspicion that Titleist-Acushnet is bloated with OH which includes advertising and endorsements to name a few.

[GolfSpy Barbajo]

"GET OFF MY GRASS!!"      

 

If I recall correctly (and that's no guarantee!), Acushnet said at the time this was announced over a year ago that the proceeds would go towards paying off FILA's purchase price, essentially paying off the investors who funded the purchase in the first place. Percentage-wise, a $1million loss on sales of $1.5 Billion is fractional -- I'm no financial whiz but I'm wondering if paying off those investors might alter the picture somewhat.  

[Severtheties]

I guess part of the question is what are those investors roles going forward after they are "paid off." Do they go away and the company can finally go in a certain direction they weren't able to before or do they stay with a voting share and such and continue to control things.

[Justin H]

Sorry for reviving an old thread...

 

A pretty bad link (bad blogging wise) posted in r/golf led me to search for Acushnet on MGS, which led me here. I was in the middle of a move and new job around this time, so I must've missed all the to do. Had no idea Acushnet went public!

 

If anyone is interested, or still around, here's the link from r/golf: http://www.dailyspread.com/blog/2016/12/20/costco-for-all-your-golf-needs/

 

Hate to give them traffic, but the 'outsider' take on what's going on with the Kirkland ball is somewhere interesting...

 

sent from mobile device - please forgive typos