Poised to be nation's largest sports M&A deal, TaylorMade sale draws global bidders
TaylorMade, one of the most coveted names in golf, is up for sale. Under the ownership of Korean private equity firm Centroid Investment Partners, the brand’s valuation has more than doubled in just four years, reaching an estimated 5 trillion won ($3.5 billion).
According to industry sources, Centroid aims to finalize the sale within this year, with Middle Eastern sovereign wealth funds and top-tier global private equity firms emerging as key bidders.
Revenue growth under Centroid
In 2021, Centroid acquired TaylorMade from US investment firm KSP Capital with a consortium of limited partners at a valuation of $1.71 billion — equivalent to roughly 2 trillion won, based on exchange rates at the time.
Since then, TaylorMade has significantly boosted its earnings. Revenues surged from $943 million in 2020 to $1.44 billion in 2023, driven by the brand’s strategic push into the golf ball market.
While TaylorMade has long been a leading name in golf equipment, it had previously lagged behind competitors in the golf ball segment. However, through aggressive expansion and investment, including the opening of a new production plant in Korea last year, the company has increased its market share, positioning itself just behind Titleist, the industry leader.
Korea: Home turf for golf brands?
Among the big three golf brands, two — TaylorMade and Titleist — are owned by Korea-domiciled companies.
In 2011, Fila Korea acquired Acushnet Holdings, the parent company of Titleist, for $1.2 billion. Acushnet’s portfolio includes multiple leading golf brands, such as Titleist, FootJoy (golf apparel), and Scotty Cameron (a premium putter manufacturer).
Meanwhile, Topgolf Callaway Brands Corp., Callaway’s parent company, remains under the ownership of multiple US-based shareholders, including the world’s largest investment manager, BlackRock.
Last year, reports surfaced that Callaway shareholders were considering selling the company’s golf equipment and hard-goods business for nearly $3 billion. While rumors suggested that a Korean strategic investor was in the running to acquire Callaway, the company denied any such discussions, stating that it was “not aware of any such negotiations.”
Korea's biggest sports M&A
To finance its $1.71 billion acquisition in 2021, Centroid partnered with a group of limited partners, including Korean fashion retailer F&F, which invested roughly 350 billion won in the deal and secured a 57.8 percent stake in the investment fund.
As rumors about TaylorMade’s potential sale surfaced, F&F opposed the move, arguing that the brand has yet to fully realize its growth potential. The retailer also claims to hold the right of first refusal regarding TaylorMade’s management rights, which would allow it to intervene in the company’s decision-making process.
However, Centroid disputes this claim, arguing that F&F’s intervention rights were minimal.
“If Centroid granted F&F the right of first refusal without notifying the other limited partners, it could constitute a violation of the Capital Markets Act. This is an unusual dispute in Korea, where the roles of general partners and limited partners are typically well-defined,” said an official from a private equity firm.
Despite the legal complexities, industry experts anticipate that the TaylorMade sale will be a landmark deal, marking one of Korea’s biggest M&A transactions in the global sports industry.
silverstar@heraldcorp.com
