Adidas to buy Adams Golf for about $70M
The German company's TaylorMade-adidas Golf business will acquire Plano, Texas-based Adams Golf for $10.80 per share. That represents a 9.5 percent premium over the company's Friday closing stock price of $9.86.
The news sent shares of Adams Golf up 87 cents, or 8.8 percent, to $10.73 in morning trading.
Adidas said the addition of Adams Golf will allow TaylorMade-adidas to broaden its product range and expand its presence to a wider range of golfers. Adams' products focus on game-improvement, along with senior and women golfers, while TaylorMade-adidas' focuses on younger and more advanced golfers, Adidas said.
Adams will remain headquartered in Plano, Texas. The deal, which remains subject to approval by Adams shareholders, has been approved by that company's board. In addition, stakeholders representing about 35 percent of the company's outstanding shares and have agreed to vote in favor of it.
Adidas said it plans to finance the deal with cash on hand or through existing credit lines. The deal, which is also subject to customary closing conditions and regulatory approvals, is expected to close mid-2012.