The AP is reporting that adidas has hired Kasper Rorsted to replace long time CEO Herbert Hainer. You can read the full report here.
Hainer’s contract was set to expire in early 2017. Last year there was a debate of sorts about whether or not Hainer’s contract would be extended. That debate has clearly ended. Whatever the impetus, adidas Group will have its first new CEO in 15 years. Rorsted will take control on October 1.
The developments at adidas should be of great interest within the golf world. adidas is the parent company to TaylorMade, Ashworth and Adams.
After 2 years of disappointing results, where the phrase double-digit declines at TaylorMade appeared several times in adidas’ quarterly reports, sale rumors have been swirling about all three brands.
The information we’ve been able to gather suggests that Ashworth and Adams are being actively shopped, while adidas is also entertaining offers for TaylorMade.
While we’ve received conflicting information over the last several days, the best information we have suggests no deals are imminent, although we wouldn’t be the least bit surprised to see adidas totally divest itself of all 3 brands within the next 6-12 months.
Dave S
8 years ago
I recently spoke with a pro at a big box retailer who said that a TaylorMade / Under Armour merger was basically a done deal. Makes sense if you think about it… UA can get into the equipment game by leveraging the efficiencies that TM already has, and Adidas can bail since they feel that TM is a ball-and-chain for their bottom line.
This would be an interesting partnership.
Tony Covey
8 years ago
UA is always mentioned, but I don’t see it happening. Of the serious inquiries made, I’m told none of them from within the larger sporting goods industry. In more general terms, it’s unlikely adidas would sell TaylorMade to one of its top competitors.
Dave S
8 years ago
Maybe not… but weird things can happened when shareholders get involved. If UA offers the most lucrative purchase deal and Adidas views its TM brand as a drag on its bottom line, there could be substantial pressure put on the board to sell.