FOR SALE! - ADAMS GOLF

[GolfSpy_X]

ADAMS GOLF IN PLAY: A year ago, the Acushnet Company was up for sale. The New Year is only days old and Adams Golf (ADGF: NASDAQ) is looking for a strategic buyer. The Company's

Board of Directors has unanimously decided to explore and evaluate strategic alternatives for the purposes of enhancing shareholder value. Translation of the corporate talk means the stock price needs to pull its socks up and entertaining potential offers is the way it will attempt to be accomplished.

 

Adams Golf has engaged Morgan Stanley & Co., which also happened to be the lead banker on the Acushnet deal last year. "We are pleased to be working with Morgan Stanley on this initiative," stated Chip Brewer, CEO and President of Adams Golf in a prepared statement. "They bring strong market insight and a wealth of experience in these matters. As we continue to strengthen the Adams Golf brand, the entire board thinks the current market valuation is inconsistent with the company's performance and future prospects."

 

The Board of Directors intends to consider the full range of available options. The Company made a point to state that it has not made a decision to pursue any specific strategic alternative at this time, and the exploration of strategic alternatives may not result in any specific action or transaction. There is no definitive timetable for the process. Adams Golf does not intend to provide updates or make any further comment regarding the evaluation of strategic alternatives unless the Board of Directors approves a specific action or the process is concluded.

 

Source: GolfBiz.net

 

 

[Jmikecpa]

Would be a nice target for an aquisition. They have a healthy operating cash flow this year through the first nine months and do not have a ton of capital tied up in PPE.

[RookieBlue7]

Well Under Armour was a rumor in the Titleist sweepstakes. Adams has to be cheaper than Titleist was. Love the brand and I hope whomever buys them doesn't run them in the ground. I would anticipate a scaling back of the frequency of releases, which IMO has always hurt them.

[McGolf]

If they go the way ot Titleist and dont forget Cobra, I think it may end up stronger. They have strong designs up and down the line,

It has always been about the marketing dollars which few companies can complete at that level. Maybe the next group will be deeper in the pocket and boost both Adams and the buyer?!

[JohnBarry]

My Golf Spy to Buy Adams Golf, clubs to be designed for golfers, not marketing.

[Tyk]

I'm a bit nervous about this news. Adams has grown to be one of my favorite companies, and while seeing them in a better financial position would be great, it also opens the door for changes that might not be so great.

 

Guess we'll have to wait and see. I hope it works out well.