TaylorMade-adidas Golf Company to Acquire Adams Golf (Nasdaq: ADGF)

Chicago, IL 3/19/12 (StreetBeat) -- The adidas Group and Adams Golf, Inc. (Nasdaq:ADGF) today announced that the TaylorMade-adidas Golf business segment has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $70 million (approximately EURO 53 million), which represents a premium of approximately 71% to the share price prior to Adams Golf's announcement that it was examining strategic alternatives on January 4, 2012.

Through the acquisition of Adams Golf, TaylorMade-adidas Golf reinforces its position as the world's number one player in golf. The addition of Adams Golf enables TaylorMade-adidas Golf to broaden its product range and to extend its presence across a wider array of golfers.

"This acquisition reflects our commitment to continued growth in the golf category," said adidas Group CEO Herbert Hainer. "The proposed combination of Adams Golf and TaylorMade-adidas Golf brings together two highly complementary sets of brands, combining Adams' focus on game-improvement as well as senior and women golfers with TaylorMade-adidas Golf's focus on the younger and the low-to-mid handicap golfer."

"We are very excited to team up with Adams Golf, whose management team we have respected for many years," commented Mark King, President and CEO of TaylorMade-adidas Golf. "Our mission is to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal."

"This merger provides strong opportunities for our employees, suppliers and partners," said Barney Adams, Interim CEO of Adams Golf. "The Adams Golf brand will fit nicely into TaylorMade-adidas Golf's stable of brands, and together we will be able to increase our reach and better serve our customers by leveraging a wider set of resources. We are also excited that TaylorMade-adidas Golf has decided to maintain Adams Golf's headquarters in Plano, Texas."

The Board of Directors of Adams Golf has unanimously approved the transaction. Certain insiders, who include John M. Gregory, Joseph R. Gregory, SJ Strategic Investments LLC, B.H. (Barney) Adams, Russell L. Fleischer, Mark R. Mulvoy and Robert D. Rogers, collectively own approximately 35% of Adams Golf's outstanding shares and have agreed to vote their shares in favor of the transaction. The adidas Group plans to finance the acquisition with cash on hand or through existing credit lines. The transaction is subject to customary closing conditions and regulatory approvals as well as approval by Adams Golf shareholders. The transaction is expected to close mid-2012.

In connection with the transaction, Barclays is acting as financial advisor to the adidas Group, and Sheppard Mullin Richter & Hampton LLP is serving as legal counsel. Morgan Stanley is acting as financial advisor to Adams Golf and Haynes & Boone, LLP is serving as legal counsel.

About Adams Golf

Adams Golf designs, assembles, markets and distributes premium quality, technologically innovative golf clubs for all skill levels. Recently launched products include the Speedline Fast 12 drivers, Fast 12 LS drivers and the Speedline Fast 12 fairway woods, along with the Idea a12 OS irons and hybrids, Idea a12 hybrids, Idea Pro a12 irons and hybrids, Idea Tech V3 irons and hybrids, Redline irons, Idea a7 and a7 OS irons and hybrids, and Speedline 9088 UL drivers. Adams Golf also develops new products under the Yes! Putters, Women's Golf Unlimited, Lady Fairway and Square 2 brands. In 2011, net sales were approximately $97 million (EURO 73 million).

About the adidas Group

The adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of products around the core brands: adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, the Group has more than 46,000 employees and generated sales of over EURO 13 billion in 2011.

About TaylorMade-adidas Golf

Headquartered in Carlsbad, California, TaylorMade-adidas Golf Company sells golf clubs, balls clothing and accessories under the TaylorMade, adidas Golf and Ashworth brands. TaylorMade-adidas Golf Company posted 2011 sales of over EURO 1.0 billion.

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Adams Golf (NASDAQ: ADGF) Reports Small Decline in Earnings

Austin, TX 11/18/11 (StreetBeat) --For the three months ended September 30, 2011, Adams Golf (Nasdaq: ADGF) recently reported that its net sales totaled $20.5 million, compared to $19.7 million for the same three month period in 2010. This represented a 4 percent increase. The company earned a net profit of $0.5 million, or $0.06 per fully diluted share, for the three months ended September 30, 2011, just under the $0.07 per fully diluted share reported for the same three months in 2010.

Commenting on the results, Chip Brewer, CEO and President of Adams Golf, said, “We were pleased with our third quarter and year-to-date financial results, especially in light of today's economic conditions. Furthermore, and perhaps most importantly, we continued to make progress on our brand development and market share objectives during the quarter:”

Domestic business grew 12 percent for the third quarter of this year as compared to 2010, reflecting both market share and distribution gains according to the company. International business declined 23 percent for the third quarter year-over-year. The company anticipates that international revenue growth will resume in the first half of 2012.

The company ended the quarter with a strong balance sheet, reporting aggregate cash and cash equivalents of $11.3 million and no outstanding balance on a credit facility maintained with Wells Fargo.

Adams Golf gained market share over the past year. According to Golf Datatech LLC, through September, the company’s year-to-date US iron dollar share, in the combined on and off course channels, was 10.87 percent, up 9 percent year-over-year. Year-to-date wood dollar share in the same channels was 5.82 percent, up 7 percent year-over-year.

Brewer shared his outlook for the future, commenting that, "Looking forward, although we recognize today's economic uncertainties and lower consumer confidence, we also believe that year to date the golf equipment business has weathered these storms reasonably well and is in a gradual state of recovery. Specific to our business, we are pleased by our performance over the last several quarters during which we believe we have delivered positive financial results and simultaneously strengthened our brand and reinvested for the future.”

"Whatever the economic conditions in Q4 and 2012 may be, we remain both confident in our strategy and dedicated to creating long term shareholder value via continuing our revenue growth and brand development trends," concluded Mr. Brewer.

The company introduced new Idea a12os irons and hybrids during the quarter and those clubs have generally been receiving positive reviews from both consumers and the trade. They plan to roll out an innovative new fitting system for both hybrids and hybrid iron sets during the fourth quarter.

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