In a deal that puts TaylorMade-adidas in the unusual position of manufacturing products for one of its biggest competitors, the German-owned company has finalized a deal to buy U.S. apparel-maker Ashworth Inc.
The reported purchase price of $26.5 million and assumption of $46.3 million in debt gives TaylorMade-adidas control of Ashworth, which focuses on traditional lifestyle golf apparel. Ashworth currently has a licensing agreement with Callaway Golf – TaylorMade’s biggest rival in the equipment market — to manufacture and sell Callaway-brand shirts.
Callaway officials, however, have indicated they will seek a new licensing agreement with a different manufacturer.
Adidas officials said they believe the two brands will complement one another. Ashworth’s fashion approach is expected to provide a contrast with adidas’ more sporty, performance-oriented product line.
They said they plan to reinvigorate the Ashworth brand, which has been plagued in recent years by management turnover and financial difficulties.