Adidas has agreed to sell its TaylorMade, Adams Golf and Ashworth golf brands to US private equity group KPS Capital Partners, in a deal worth $425m.
The announcement comes just a day after Rory McIlroy confirmed he has signed an estimated $100m long-term equipment deal with TaylorMade.
Despite now boasting all three of the World's top 3 players and 2017 Masters Champion Sergio Garcia, there has been a noticeable downward trend in golf equipment revenue as participation declines, and as a result Adidas put their brands on the market last year.
Adidas reported that while TaylorMade’s first-quarter 2017 net sales were up 4 percent on a currency-neutral basis year over year, it was both the Adams and Ashworth brands that were hurting the companies profits.
The world’s second largest sportswear follow the same trend as their rivals Nike, who exited the golf equipment business last August - leaving McIlroy and Tiger Woods out of equipment deals.
And while Adidas will be out of the golf equipment business, they have confirmed they will continue to make apparel for the sport.
“TaylorMade is a leading global golf brand with an exceptionally strong market position,” said Kasper Rorsted, CEO of Adidas AG in a release.
“We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership.”
“Within our long-term strategy ‘Creating the New’, our focus is clearly on our core competencies in footwear and apparel and on our two major brands Adidas and Reebok,” Rorsted added.
The deal ends a near 20-year business partnership, as TaylorMade was bought by Adidas in 1998.