TaylorMade-Adidas to Acquire Adams Golf

[Tony Covey MGS]

TaylorMade-adidas Golf Company to acquire Adams Golf

Herzogenaurach and Carlsbad, Calif. (March 19, 2012) – The adidas Group and Adams Golf, Inc. (NASDAQ: ADGF) today announced that the TaylorMade-adidas Golf business segment has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $ 70 million (approximately € 53 million), which represents a premium of approximately 71% to the share price prior to Adams Golf's announcement that it was examining strategic alternatives on January 4, 2012.

 

Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforces its position as the world's number one player in golf. The addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers.

 

“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group CEO Herbert Hainer. “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.”

 

“We are very excited to team up with Adams Golf, whose management team we have respected for many years,” commented Mark King, President and CEO of TaylorMade-adidas Golf. “Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal.”

 

"This merger provides strong opportunities for our employees, suppliers and partners,” said Barney Adams, Interim CEO of Adams Golf. “The Adams Golf brand will fit nicely into TaylorMade-adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources. We are also excited that TaylorMade-adidas Golf has decided to maintain Adams Golf's headquarters in Plano, Texas.”

 

The Board of Directors of Adams Golf has unanimously approved the transaction. Certain insiders, who include John M. Gregory, Joseph R. Gregory, SJ Strategic Investments LLC, B.H. (Barney) Adams, Russell L. Fleischer, Mark R. Mulvoy and Robert D. Rogers, collectively own approximately 35% of Adams Golf's outstanding shares and have agreed to vote their shares in favor of the transaction. The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.

 

In connection with the transaction, Barclays is acting as financial advisor to the adidas Group, and Sheppard Mullin Richter & Hampton LLP is serving as legal counsel. Morgan Stanley is acting as financial advisor to Adams Golf and Haynes & Boone, LLP is serving as legal counsel.

 

About the adidas Group

The adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of products around the core brands: adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, the Group has more than 46,000 employees and generated sales of over € 13 billion in 2011.

 

About TaylorMade-adidas Golf

Headquartered in Carlsbad, California, TaylorMade-adidas Golf Company sells golf clubs, balls clothing and accessories under the TaylorMade, adidas Golf and Ashworth brands. TaylorMade-adidas Golf Company posted 2011 sales of over € 1.0 billion.

 

About Adams Golf

Adams Golf designs, assembles, markets and distributes premium quality, technologically innovative golf clubs for all skill levels. Recently launched products include the Speedline Fast 12 drivers, Fast 12 LS drivers and the Speedline Fast 12 fairway woods, along with the Idea a12 OS irons and hybrids, Idea a12 hybrids, Idea Pro a12 irons and hybrids, Idea Tech V3 irons and hybrids, Redline irons, Idea a7 and a7 OS irons and hybrids, and Speedline 9088 UL drivers. Adams Golf also develops new products under the Yes! Putters, Women's Golf Unlimited, Lady Fairway and Square 2 brands. In 2011, net sales were approximately $ 97 million (€ 73 million).

 

Additional Information About the Transaction

In connection with the proposed transaction, Adams Golf will file a proxy statement and other relevant documents concerning the proposed transaction with the Securities and Exchange Commission (SEC). The definitive proxy statement and other materials filed with the SEC will contain important information regarding the merger, including, among other things, the recommendation of Adams Golf's board of directors with respect to the merger. INVESTORS ARE URGED TO READ THE PROXY STATEMENT AND OTHER MATERIALS THAT ADAMS GOLF FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS. You will be able to obtain the proxy statement, as well as other filings containing information about Adams Golf and the merger, free of charge, at the website maintained by the SEC at www.sec.gov. Copies of the proxy statement and other filings made by Adams Golf with the SEC can also be obtained, free of charge, by directing a request to Adams Golf, Inc., 2801 East Plano Parkway, Plano, Texas 75074, Attention: Investor Relations.

 

Participants in the Solicitation

The directors and executive officers of Adams Golf and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Adams Golf's directors and executive officers is available in its Annual Report on Form 10-K filed with the SEC on March 6, 2012 (as it may be amended from time to time) and its Definitive Proxy Statement on Schedule 14A filed with the SEC on April 8, 2011. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC when they become available. Investors should read the proxy statement carefully when it becomes available before making any voting or investment decisions.

 

Cautionary Statement Regarding Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as “expect,” “anticipate,” “plan,” “may,” “will,” “estimate” or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Actual results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: the ability to obtain regulatory approvals of the acquisition on the proposed terms and schedule; the failure of Adams Golf's stockholders to approve the acquisition; the risk that the acquisition may not be completed in the time frame expected by the parties or at all; the parties' ability to satisfy the closing conditions and consummate the transactions; and Adams Golf's ability to maintain its existing relationships with its employees, customers and suppliers. Additional information regarding factors that may affect future results are described in Adams Golf's filings with the SEC, including, without limitation, Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

 

All forward-looking statements speak only as of the date they were made. Neither Adams Golf, Inc. nor TaylorMade-adidas Golf undertakes any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of the press release.

 

***

Contacts:

 

Media Relations

Christa McNamara

TaylorMade-adidas Golf Company

Director of Corporate Communications

Tel.: 760-918-6466

 

Jan Runau

adidas Group

Chief Corporate Communication Officer

Tel.: +49 (0) 9132 84-3830

 

Katja Schreiber

adidas Group

Senior Corporate PR Manager

Tel.: +49 (0) 9132 84-3810

 

Investor Relations

John-Paul O'Meara

adidas Group

Vice President Investor Relations

Tel.: +49 (0) 9132 84-2751

 

Christian Stoehr

adidas Group

Investor Relations Manager

Tel.: +49 (0) 9132 84-4989

 

Johannes Fink

adidas Group

Investor Relations Manager

Tel.: +49 (0) 9132 84-3461

[RookieBlue7]

Now if TMag can roll the hybrids and forgings into their line-up, it'll be a great move. I could care less about the c-grooves on putters.

[agray88]

“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group CEO Herbert Hainer. “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.”

 

I find this statement laughable. Sure, the perception is that Adams is a game improvement company with really nice hybrids. The reality is that Adams' whole lineup is on par, or better, than TM. See the entire hybrid range, the new XTD FW and hybrids which are far better than RBZ, the players MB2 irons, the CB series, not to mention the game improvement stuff. TM has blatantly copied Adams technology, over and over. They couldn't beat 'em, so they bought 'em! I, for one, amd bummed as the most innovative company in golf has been consumed by the hype machine.

[Trebuchet]

I keep trying to write something insightful, or meaningful to express my feelings on this... but all I keep coming back to is...

 

 

BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!

[Kanoito]

I find this statement laughable. Sure, the perception is that Adams is a game improvement company with really nice hybrids. The reality is that Adams' whole lineup is on par, or better, than TM. See the entire hybrid range, the new XTD FW and hybrids which are far better than RBZ, the players MB2 irons, the CB series, not to mention the game improvement stuff. TM has blatantly copied Adams technology, over and over. They couldn't beat 'em, so they bought 'em! I, for one, amd bummed as the most innovative company in golf has been consumed by the hype machine.

 

My exact same feelings. IMO, Adams has more better-player products than TM. I would choose the MB2, CB2 and A12 over TM's irons anyday!

Let's hope Adams's identity is kept alive with the acquisition.

[GolfSpy WD]

We all knew *something* was going to happen with Adams, but this is the last thing I wanted. I agree with others, Adams clubs look much nicer, though my opinion is still out on the RBZ vs XTD. I was really hoping for a Hireko-Adams joint venture, but oh well.

 

TaylorMade-adidas Golf Company posted 2011 sales of over € 1.0 billion.

 

In 2011, [Adams Golf] net sales were approximately $ 97 million (€ 73 million).

 

Sales and actual profit are two different things, but holy crap!

[Tony Covey MGS]

“This acquisition reflects our commitment to continued growth in the golf category,” said adidas Group CEO Herbert Hainer. “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.”

 

I find this statement laughable. Sure, the perception is that Adams is a game improvement company with really nice hybrids. The reality is that Adams' whole lineup is on par, or better, than TM. See the entire hybrid range, the new XTD FW and hybrids which are far better than RBZ, the players MB2 irons, the CB series, not to mention the game improvement stuff. TM has blatantly copied Adams technology, over and over. They couldn't beat 'em, so they bought 'em! I, for one, amd bummed as the most innovative company in golf has been consumed by the hype machine.

 

It's certainly a well-crafted statement spun how it needed to be spun. Here's how I see it.

 

• Adams and TaylorMade have comparable, competitive products in the woods category. Where drivers are concerned, nearly everyone makes a similar performing product. The perceived benefits from one over another have more to do with brand awareness, looks, sound & feel, and to a higher degree than most might consider, luck of the draw when it comes to how well a stock shaft fits a particular golfer. Apples to apples, they're essentially the same. Both could stand to trim their offerings just a bit.
   
  I would further suggest that even the hottest head to head battle in the equipment industry (XTD vs. RBZ) would ultimately boil down to how well the shaft fit a particular golfer. Generally speaking, Adams uses a higher quality shaft, and off the rack, that probably gives them the advantage, but I don't believe that there is a ton of performance difference between the heads.
• Hybrids - Really a sub-category of woods, and Adams has been #1 for quite some time. Apart from simply creating a very good product, what Adams does better than anyone is create a range of hybrid products to appeal to every segment of the marketplace. Ironically enough, if there is a single area where TaylorMade's products are underrated, it is within the hybrid space. What TM doesn't have available at retail is anything that competes with the idea Pro a12 (a hybrid truly designed for the lower handicap golfer, and those who prefer a lower profile head), and they don't really have anything like an a12OS designed for higher handicap golfers who want a bit more bulk/forgiveness. TaylorMade's hybrid lineup basically spans the middle (the average golfer, I suppose), and this whole standard, tour, TP, designation crap only causes confusion, and does little to actually differentiate one product from another. Adams gives them much broader coverage in this space.
• Irons - IMO, this is where TaylorMade stands to gain the most. While I'm sure those inside TM would tell you that they're iron do just fine, and that's probably true when you look at the middle handicap range (the RBZ, Burner, and to a degree, R11 crowds), but this is one area where Adams makes a far superior product. From blades (MB2) to Super-GI clubs, Adams has a top notch performer for every segment. TaylorMade has never really done Super-GI well (only slightly better than Titleist really), and (just my opinion again), the designs for their CB & MB are over the top, and don't appeal to the traditionalist who prefers the clean look of an Adams or a Mizuno. Just as with hybrids, TaylorMade provides excellent coverage in the middle, but doesn't really address better golfers, or high handicappers very well. The Adams buy gives them that.
• Wedges - Neither company has had a wedge that was a retail success in years. The acquisition doesn't change that.
• Putters - Both companies do well-enough with putters. I expect both lines will continue unchanged.

Ultimately I'm not sure how I feel about this. I was certainly more in favor of one of the other rumors we heard being the one that would come to fruition, but it is what it is now. Assuming TMaG has the good sense to let Adams be Adams. If they do that, and give them the financial support to do some real marketing as well as help improve their social networking strategy, it could mean better things for Adams.

 

Of course, in terms of the overall product quality, Adams, with the right buyer, was in the best position to make a solid run at TaylorMade (and I bet TaylorMade knew it). Obviously that won't happen now...and this only makes TMaG stronger.

 

It sucks from the consumer standpoint because there is now less real competition in the marketplace. As I said...all we can hope for is that TaylorMade lets Adams be Adams, and that they don't do to the brand what Callaway did to Ben Hogan.

[RoverRick]

I wonder if Chip Brewer decided he really did not want to work for TMag.

 

 

I just hope next years Adams is not this years Adams painted white with a nut glued on the back and promisses 17 more yards because it has TMag super secret technology (which is white paint.) If you really want the 17 yards well you have to get an aftermarket shaft but that has nothing to do with the club head.

[Tony Covey MGS]

Just got asked this in a text message from one of our club testers:

 

"So does TM really develop Adams products and sell them aggressively, or do they just let them die and focus on their own white heads without competition"?

 

Obviously it's too soon to say. And really, you should probably pay very little attention to what's said about the future of Adams over the next few days. Mergers and Acquisitions are tricky things, and having worked for a company involved in one once upon a time, and having seen several others play out, what I can tell you is that the plan today could bear little resemblance to the plan tomorrow once the parties involved dig in and start getting their hands dirty. You can create all the project plans in the world, but once they're knee deep in it, the original plan may mean very little.

 

So, hare are a few ways I can see this actually going down (and this will almost certainly take years to develop).

 

1) TaylorMade and Adams continue to exist as separate product lines. There could be some shifting along the way (Adams could become a brand focused exclusively on GI for example, or TaylorMade could stop producing irons for low-handicap golfers), but the goal would be to create a multi-brand structure where one lineup compliments (and fills in holes for the other). Incidentally, reading between the lines of the PR, GI clubs does seem to be a point of interest here.

 

Another manifestation of this model (and perhaps the one that ultimately would make the most sense) is to adopt a relationship similar to that of Cobra and Titleist before the PUMA acquisition. Adams could function as the testing bed for new technologies (some would argue they already do that for TaylorMade (speed pocket vs. velocity slot). Essentially you'd get 1st generation technologies in the Adams lineup, and as they mature, they'd be shifted into TMaG products.

 

2) The lineups merge with clubs from one addressing the weakness of the others. I'd love to see this, as it does offer the potential to create the best lineup of clubs (top to bottom, minus wedges) on the market today. The issue here is that both companies already offer enough product for 2 golf companies on their own, so there would have to be a ton of streamlining to make it work. It's unlikely to happen, but the potential to create the best products in golf (even before the marketing department gets involved) is very real.

 

3) Each company continues to do its own thing. Adams simply has more money to work with. Golfers might actually prefer this model, but I don't think you'll see it happen. TaylorMade will want to remain #1. Even if both companies are under the same umbrella, I just don't see TaylorMade putting itself in a scenario where Adams-branded clubs could outsell the TaylorMade brand.

 

4) TaylorMade adapts as much of the Adams technology as they can, and then slowly kills the brand. This is the worst case scenario, but I think it's probably also the least likely.

[GolfSpy WD]

Another manifestation of this model (and perhaps the one that ultimately would make the most sense) is to adopt a relationship similar to that of Cobra and Titleist before the PUMA acquisition. Adams could function as the testing bed for new technologies (some would argue they already do that for TaylorMade (speed pocket vs. velocity slot). Essentially you'd get 1st generation technologies in the Adams lineup, and as they mature, they'd be shifted into TMaG products.

 

I definitely see this being the case. Adams may be small, but this would differentiate the brands and appease the Adams fanboys out there. The other thing to consider is advertising strategies. The fact that Adams is low key is an appeal to many who prefer to not have the same clubs as everyone else.

[fozcycle]

I guess Chip saw the writing on the wall before he jumped ship.....

 

From golfweek....."Earlier this year, Chip Brewer, president and chief executive officer of Adams, resigned to become the head of Callaway Golf."

 

IMO, I truly believe that TMAG comes out a winner, They will now have Tom Watson and half of the Champions tour in the bag!

[RookieBlue7]

My problem with everyone saying that Chip left Adams because he saw the writing on the wall and went to Callaway. Problem for me is that he went to a fledgling operation.

 

Then there's everyone saying that TMag is stealing Adams velocity slot, last time I checked, Adams "borrowed" that technology from Nike, whom invented it by way of the compression channel.

 

Then there's the fact that Adams is poorly marketed overall. TMag is a marketing genius and there's a reason they smash in sales. Had Adams aggressively marketed like TMag, they'd have never sold because they'd bemaking money hand over fist. That's why I love their product so much, it's cheaper because we don't pay for the marketing. Had they scaled back on their releases, as well, it'd have meant more gross profit too.

 

As far as comparing the XTD to the RBZ, go ahead, the technology is the same except for one tiny factor everyone omits. The XTD is Titanium where the RBZ is steel. The XTD SHOULD be longer.

 

I love both companies product. I love this Mather because hopefully it gives me the best of both worlds, TMag's drivers and woods and Adams hybrids and irons.

 

Oh, and one other thing. This merger isn't really a merger but a design team heading back to its roots (Adams engineers originally worked at TMag).

[Tony Covey MGS]

GolfSpy X and I just had an interesting conversation about this (working on something for the main site now). There are a handful of possible scenarios, but business being what it is, we don't see a high probability scenario where 3-5 years from now Adams as a company bears any resemblance to the company that existed yesterday.

 

RookieBlue7, I love your optimism, and over time the best of both worlds scenario could play out, but my guess is both have "TaylorMade" stamped on them.

[JohnBarry]

My reaction.....F#@K

[GolfSpy Barbajo]

 

1) TaylorMade and Adams continue to exist as separate product lines. There could be some shifting along the way (Adams could become a brand focused exclusively on GI for example, or TaylorMade could stop producing irons for low-handicap golfers), but the goal would be to create a multi-brand structure where one lineup compliments (and fills in holes for the other). Incidentally, reading between the lines of the PR, GI clubs does seem to be a point of interest here.

 

Another manifestation of this model (and perhaps the one that ultimately would make the most sense) is to adopt a relationship similar to that of Cobra and Titleist before the PUMA acquisition. Adams could function as the testing bed for new technologies (some would argue they already do that for TaylorMade (speed pocket vs. velocity slot). Essentially you'd get 1st generation technologies in the Adams lineup, and as they mature, they'd be shifted into TMaG products.

 

2) The lineups merge with clubs from one addressing the weakness of the others. I'd love to see this, as it does offer the potential to create the best lineup of clubs (top to bottom, minus wedges) on the market today. The issue here is that both companies already offer enough product for 2 golf companies on their own, so there would have to be a ton of streamlining to make it work. It's unlikely to happen, but the potential to create the best products in golf (even before the marketing department gets involved) is very real.

 

3) Each company continues to do its own thing. Adams simply has more money to work with. Golfers might actually prefer this model, but I don't think you'll see it happen. TaylorMade will want to remain #1. Even if both companies are under the same umbrella, I just don't see TaylorMade putting itself in a scenario where Adams-branded clubs could outsell the TaylorMade brand.

 

4) TaylorMade adapts as much of the Adams technology as they can, and then slowly kills the brand. This is the worst case scenario, but I think it's probably also the least likely.

 

Thoughts from a different industry ---

 

I used to work for a company that decided to take a "multi-channel/multi-brand" approach in both the US and Europe. They owned several companies that sold/marketed essentially the same product (different quality, different features/benefits) to the same customer base. The plan was to offer one brand at a low price (at low margins), a 2nd brand at a mid-level price (mid-margins) and the premium brand at a premium price (premium margins). They did this in the US and it seems obvious now but the powers that be didn't see it coming them -- the low price/low margin brand - armed with more marketing dollars - started syphoning business away from the higher margin brands - the ultimate self-inflicted wound. After 3 years the whole concept was scrapped...the lower margin brand was killed and the mid-level brand was sold off. In Europe, the company owned 11 different brand names all competing with one another. All but 1 were eliminated.

 

What does this all mean? IMO it'll be goodbye Adams in a matter of 2-3 years, with all the technology, strengths, advantages, etc rolled into the TM line, which will be better for it. Can't see a scenario where both lines co-exist as friendly competitors - any a12OS sale (depending on the margin) would be a non-sale of an RBZ set. Whatever they do, they won't sacrifice margin. So I think option 4 ultimately wins out, but option 2 is a possibility.

 

God forbid they make like Callaway with Hogan and turn Adams into a clothing brand!

 

Just my 2 cents...

[MmmmmmBuddy]

This is one of the worst possible things that could have happened with the sale of Adams. The product will never be the same. Makes me a little sad inside....

[RookieBlue7]

GolfSpy X and I just had an interesting conversation about this (working on something for the main site now). There are a handful of possible scenarios, but business being what it is, we don't see a high probability scenario where 3-5 years from now Adams as a company bears any resemblance to the company that existed yesterday.

 

RookieBlue7, I love your optimism, and over time the best of both worlds scenario could play out, but my guess is both have "TaylorMade" stamped on them.

 

Acushnet made it work for a long time with Titty and Cobra. Who knows? I'm just glad I bought $2k of stock when it was trading at $5.20 a share.

[LazyTraders]

I just don't think golf is a big enough (or growing enough) industry to operate competing brands in the same categories. I think Titleist found this out with Cobra. Too much overlap to have separate tour departments, tour vans, demo days, retail space, magazine ads, tv commercials, sales reps, etc... Maybe it can work with Titleist and Foot-Joy, but they are in completely different categories (and you will notice a lot of the Titleist club pros also are Foot-Joy too).

 

Eventually the two brands will merge or Adams will just be eliminated. It won't happen this year, but in a few years for sure.

[Stuart81]

Now if TMag can roll the hybrids and forgings into their line-up, it'll be a great move. I could care less about the c-grooves on putters.

 

 

I could RookieBlue7, just had a delivery of YES putters in the shop, might have to have a sale on these ASAP - Whoops

 

Stuart

[JMiller]

Well I wanted to sit back and think about the situation in the next 1 or 2 years. I don't see Adams / Yes! disappearing within this time frame. I feel that YES putters are great putters and have a really high MOI (if that is your thing) the c-grooves work a lot like the method's grooves and rife grooves in attempting to get the ball rolling more purely faster. So I think that you should start marking down YES! putters just yet if you do let me know I would be interested in the price you are offering a few for

 

The total golf industry (not just equipment) totaled $62 billion in 2000, this increased 4.1% at the 2005 reading to $76 billion. I think as the game grows there is room for two companies that have strong hold on different parts of the market.

 

Adams pretty much had TM by the balls so to speak in some of the departments in the equipment market. Fairway woods, hybrids, senior clubs, ladies clubs and their Driver technology in aerodynamics. For a lot of people the Adams drivers have been lower spinning heads when you have a high swing speed. Adams has been on the hybrid market for the longest and been extremely popular on tour for players that hit hybrids. TM isn't the first company to hit the market with technology that RBZ features, Nike and Adams have had similar technology. Adams has had 2 previous fairway wood models with the slot technology in it (F11 and Fast 12) now there G3 is in the XTD fairway woods and hybrids.

 

Oh and BTW I can't wait for MGS to get in the XTD line of products and test them, I read a different review on a different site claiming that the 17* XTD hybrid was hitting as long as their Tour Exotics 3wood. If that is the case wow, I wounder if the Adams Super XTD fairway and XTD hybrid line is gonna put the TM RBZ to shame. Only 5 yards less carry then the Ping i20 3wood and Tour Edge 3 wood with 14 yards less total. That is insane if that holds anywhere close to being accurate. Also only 400 RPM more spin then the 3 woods, the two slots one on top and one on bottom is just more efficient in creating the trampoline effect on the club, the slot is hard to get over on the crown but if you can at least give this a go before bagging your next gamer. They are coming out like right now 3/15/12 to 4/1/12 they should be in the stores.

 

There are some people out there that will eat, sleep and breath TM products and refuse to play anything else. Well if you are one of these people good for you, I'm sure the white crown gives you 5 extra yards then the other companies. There are also people out there that will never touch a TM club. They will do anything to avoid it like a deadly disease.

 

I tend to be more open minded and do reviews and give opinions on equipment that does what it says and works well for me. If you look at my signature I have a mixed bag all over the place there is a reason the equipment I have does exactly what I need it to do. I don't need more distance on fairway woods and hybrids, I don't need a lot of forgiveness in irons what I want is accuracy and control.

 

I personally don't like TM at all, I am not saying they would not work for other people they just do not work will for my swing and club head speed. Out of all the Driver heads that I have hit before going with my new gamer TM R11s had the most spin with an optimized shaft in it. I have a hard time getting over the white crown, I hate it. I am not a huge fan of anything but a black on the crown but I guess I am learning to deal with the flat gray on the Adams Speedline Fast 12 LS. It is slightly more tolerable then the bright blinding white on the TM clubs.

 

One last thing, It really doesn't come as a surprise that TMaG ended up with the bid. TaylorMade was founded by Barney Adams brother the late Gary Adams. These two companies ran in the family, they shared information with each other before the buy anyways on technology.

 

I personally think that Adams will stick around for 1-3 years however around 3-5 years I am a lot like anyone else who knows. I think TMaG is going to give Adams marketing backing to support them in the areas in which they have a good foothold. Adams has been breaking into the more players arena as of late and the reason they were looking to sell was originally to get a partner. I would have loved to seen Under Armor or Oakley get the win on the buy, but as we stand now it is TMaG.

 

I think two main things could boost TMaG with the sale of Adams if they DO NOT scrap Adams completely.

--> TM would get all the technology in Adams and be able to refine the fairway wood they currently have in their line.

--> Adams golf would get the one piece they were missing to become a bigger name in golf, Marketing capital.

 

Really would be a win/win for both lines of clubs if this were the case. I just hope that they don't come out of the gate and scrap Adams right away and re-stamp the technology with TM RBZ v2 and a white crown that would just make me gag and want to vomit. Like i said before unless you are aware that TM now using the old Adams technology if they scrap it, which I would have to assume is very small percentage of the market, then you are going to have people going to TMs current competitors like Titleist/Cobra, Callaway, Bridgestone, Nike, Wilson, etc.

 

We will see where the dice fall so to speak and only the future will tell us the real intention of TMaG with the Adams company. I just hope that they are not pulling a marketing slight of hand like usual in saying they plan to keep Adams identity around to grab parts of the market that TM just doesn't have currently. It would be great to SHARE information and improve both lines of clubs targeting the players each one currently has. However, that probably not going to happen unfortunately.

[GolfSpy WD]

Oh and BTW I can't wait for MGS to get in the XTD line of products and test them, I read a different review on a different site claiming that the 17* XTD hybrid was hitting as long as their Tour Exotics 3wood. If that is the case wow, I wounder if the Adams Super XTD fairway and XTD hybrid line is gonna put the TM RBZ to shame. Only 5 yards less carry then the Ping i20 3wood and Tour Edge 3 wood with 14 yards less total. That is insane if that holds anywhere close to being accurate. Also only 400 RPM more spin then the 3 woods, the two slots one on top and one on bottom is just more efficient in creating the trampoline effect on the club, the slot is hard to get over on the crown but if you can at least give this a go before bagging your next gamer. They are coming out like right now 3/15/12 to 4/1/12 they should be in the stores.

 

Sorry to go off topic...

 

Adams and TM go after two different markets in this area. Adams is more of us, the crazy golfer who wants the best quality shaft. TM is more for the masses. That said if a golfer was properly fit for both the RBZ and XTD heads, there would probably be only a small difference in yards, with the XTD on top because it reaches the .830 COR limit. This isn't so much because TM can't, but it's their deceptive marketing which held back the RBZ at .822. The RBZ 2.0 will probably read the .830 limit. I have no idea how much of a difference the 0.008 will make, but trust TM to convert it to 15 more yards.

 

Using titanium over Carpenter 455 steel doesn't affect distance because of the COR limit. It does affect feel and possibly forgiveness. Spin and launch angle are due to the center of mass of the clubhead and the shaft.

 

Now back to the topic...

 

As I posted on the blog, I don't see Adams going away entirely. TM has a duty to keep growing for it's shareholders and because it has taken such a huge piece of the male golfer market, I think they just need to expand more in other areas without taking away from their current market.

[JMiller]

Adams and TM go after two different markets in this area. Adams is more of us, the crazy golfer who wants the best quality shaft. TM is more for the masses. That said if a golfer was properly fit for both the RBZ and XTD heads, there would probably be only a small difference in yards, with the XTD on top because it reaches the .830 COR limit. This isn't so much because TM can't, but it's their deceptive marketing which held back the RBZ at .822. The RBZ 2.0 will probably read the .830 limit. I have no idea how much of a difference the 0.008 will make, but trust TM to convert it to 15 more yards.

 

I think that the Adams XTD is going to be a better club then the RBZ in testing for majority of the people that actually give it a try. I would say it is 20-25 yards longer then the r9 at 150 ball speed (sorry for the marketing joke reference TM used on the RBZ). The Super XTD probably has a slightly higher launch angle and lower spin due to the top slot over the RBZ. The main issue with the Super XTD for majority of people is only cosmetic and not performance.

 

This is how I am seeing the Adams / TMaG deal... I agree with MGS that TMaG bought up Adams golf because they felt threatened by the products that Adams was releasing. I think that TMaG would be well suited to do what they say in keeping the Adams line as it is and just scooping the extra revenue and providing marketing support for that line. I also think that both lines can learn from each other, and share technology, primarily putting Adams technology more in TM line of products then the other way around.

 

My fear is that TM will get there fingers into the engineering and design of Adams clubs and they will go down hill for my preference in clubs. They could either shut it down completely which would also hurt me and my preference of clubs. I personally want to gag and vomit at the thought of the Adams Super XTD being re-stamped TM RBZ 2.0 and painted white. I hat white clubs, I don't like how TM equipment preforms for me, so this whole thing of shutting down Adams for me is terrible news if it were to happen.

[Addicted2Golf]

God how I hate Taylormade. Why did it have to be them?

[Moecat]

Barney Adams thinks it's good news ....

http://www.golfdigest.com/golf-equipment/blogs/hotlist365/2012/03/adams-on-taylormade-deal-the-b.html

 

When the news came across our desks today at 4 a.m. that TaylorMade was acquiring the long-time independent, self-made success story that is Adams Golf, much of the discussion centered on the bigger company expanding. Little was heard from the company that was being acquired, particularly from the man who founded that company, the man who made the fairway wood a hot commodity two decades ago with an upside down design he scribbled on an airline napkin, the man who in a large way turned the hybrid into a standard piece of equipment by sheer force of will.

 

Barney Adams, the patriarch of Adams Golf and its current interim CEO, called at 10 this morning Eastern Time, ebullient as ever, with a self-deprecating tone that belies the wisdom of nearly 30 years in the business.

 

"Just so you know," he barked with a laugh. "I'm calling from California and I've already been up for two-and-a-half hours and I haven't even had a cup of coffee yet, so I'm just warning you if I doze off."

 

Barney Adams? Not bloody likely. On a day when he agreed in terms to sell the company that bears his name and he founded 25 years ago for $70 million, Adams was still full of the entrepreneurial energy and straight-talk outlook that allowed his independent company to rise to be one of the leaders in innovation and sit currently as one of the top-selling iron, hybrid and fairway wood brands in golf.

 

The acquisition is good news, Adams said.

 

 

"I think it's the best of both worlds," he said. "We still get to operate as an independent, entrepreneurial company, but now we have a trove of resources that we've never had before that we can use if it's the right application."

 

Adams believes his new owners are impressed with their new acquisition, and he doesn't see them changing much of anything, certainly in the short term.

 

"They look at this as a revenue synergy not a cost synergy, not dismantling it and moving it to California at all," he said. "They think the great advantage is keeping the brand intact and then helping the brand when they can. They like what we do, they like our spirit, our entrepreneurial approach to the game, the innovations that we've come up with, and they want to keep that going.

 

When Adams Golf announced Jan. 4 it would be "examining strategic alternatives," the rumor mill immediately had the company for sale. Even with today's announcement that TaylorMade was acquiring the Plano, Texas-based company, Adams knew there would be talk of TaylorMade simply buying a rival company to shut it down. He doesn't get it.

 

"There are some people I strongly suspect who are going to think that way, but that has not been indicated at all," he said. "It's been broached only from the standpoint of making it clear that it is exactly not what they intend to do.

 

"We have a very good brand presence in the marketplace. Why wouldn't they want to keep it going? It ain't broke, don't fix it. Maybe you can just help it a little bit."

 

Adams joked about his age, but he's not willing to admit that it's time to step aside, whether or not that's the reality of today's announcement. In typical Barney Adams fashion he had the ability to sound sanguine and wistful at the same time.

 

"If you read the fine print of the press release, it says that I'm 73 years old, and when I get up in the morning, my back hurts and I have to get up in sections, and my tee shots have gotten 25 yards shorter, that's the reality. It's time, but in my heart will it ever be time? Probably not. But what the hell? Seriously, that's reality.

 

"What I've said is I will make myself available to do whatever I can to keep Adams going in the spirit it has in the past," he said. "That can range from some degree of being available to 'Thank you very much, we forgot to tell you that you're 73 years old, and don't call us, we'll call you.'

 

"Right now, my heart's with the Adams employees and making this a smooth transition, and that's what I'm working on."

 

He reiterated that he didn't think there would be dramatic changes at the company he founded in 1987, the one he wrote a book about in 2008 and the one that in large part was central to his winning the PGA of America's most significant industry lifetime achievement honor, the Ernie Sabayrac Award, in 2010. He thinks and trusts that today is a good day for the future of his company and its new bosses.

 

"Speaking realistically, who knows what's going to happen? They're a very fine company, very honorable people and this is what they've looked us in the eye and said. That's good enough for me. I have a lot of respect for TaylorMade, always have. Look what they've done. They're very smart people. That's exactly what they've told us.

 

"They're not going to mess with that. Look what we've done. They just want to help us be better."

 

--Mike Stachura

[Super Tuna]

Of course he (Barney Adams) thinks it's a good thing. He's made it clear he wants out of the business side of golf anyways.

 

That being said I honestly can't tell from the writing if that's his opinion or if he and the writer all think we're terribly naive.

[Moecat]

Well, at least one investor seems ticked off at the acquisition ....

 

http://www.bloomberg.com/news/2012-03-29/adams-golf-sued-by-investor-over-70-million-adidas-offer-1-.html

 

Adams Golf Inc. (ADGF), whose golf clubs are used by players including Tom Watson and Kenny Perry, was sued by an investor claiming a $70 million offer for the company by Adidas AG (ADS) is inadequate.

 

The proposed transaction represents a “paltry premium of just 9.5 percent” over Adams Golf's closing price on March 18, the day before the announcement, and fails to adequately compensate shareholders for the “significant synergies” created by the merger, shareholder Daniel Tarsha said in the complaint.

 

Adams Golf directors “have exacerbated their breaches of fiduciary duty by agreeing to lock up the proposed transaction with deal protection devices that preclude other bidders,” Tarsha said in the complaint made public today in Delaware Chancery Court (1400L).

 

Adidas, the owner of the TaylorMade brand, said it would pay $10.80 a share in cash for Plano, Texas-based Adams. The deal, which will be financed through cash or existing credit lines, is expected to close mid-2012, Adidas said.

 

The deal includes provisions that prevent Adams Golf from soliciting other bidders, gives Adidas four days to match any competing offer and requires the company to pay Adidas a termination fee of approximately 4 percent of the total offer, Tarsha said in his complaint.

 

Tarsha is seeking to represent all Adams Golf shareholders in his request for a court order barring the deal. Adams Golf officials weren't immediately available to comment.

 

The case is Tarsha v. B.H. Adams, CA7362, Delaware Chancery Court (Wilmington).

 

To contact the reporter on this story: Sophia Pearson in Philadelphia at [email protected]