Adidas plans to sell most of its loss-making golf business
05 May 2016
German sportswear giant Adidas plans to sell most of its loss-making golf business and focus on shoes and clothing.
Adidas, the largest sportswear manufacturer in Europe and the second-biggest in the world, had launched a review of its golf unit last August. Yesterday Adidas said that it plans to enter into talks to sell the TaylorMade, Adams and Ashworth golf brands.
''We decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market,'' Adidas CEO Herbert Hainer said.
The Bavaria-based company made the announcement as it reported strong first-quarter figures for its core brand, particularly in North America.
TaylorMade came into the Adidas portfolio as part of its 1997-acquisition of French ski and boot manufacturer Salomon, for an estimated $1.4 billion, and acquired Ashworth in 2008 for $73 million, and Adams in 2012 for $70 million.
Sales of its golf units fell by 13 per cent to €902 million ($1.04 billion) last year.
