Adidas officially announced that it will sell parts of its golf division for $425 million.
The divestiture includes the TaylorMade, Adams Golf and Ashworth brands, which will be offloaded to buyout firm KPS Capital Partners. The firm will pay half of the sum in cash, and half in a combination of secured note and contingent considerations. The deal is expected to close in fall 2017.
The announcement comes less than a week after Adidas revealed that it had decided to enter negotiations with interested parties to sell parts of its golf business. Initial talks around the sale of golf brands were formally announced in August.
"We welcome all Adidas Golf employees who will be integrated into our Adidas Heartbeat Sports Business Unit," Adidas CEO Kasper Rorsted said in a statement. "Our focus is clearly on our core competencies in footwear and apparel and on our two major brands, Adidas and Reebok."
New York-based KPS Capital, which manages more than $5.7 billion in investments, counts Chassis Brakes and Heritage Home Group among their other portfolio holdings.
Guggenheim Securities served as exclusive financial advisor to Adidas, while Richter & Hampton acted as legal counsel.