Golf: Adams Golf acquires Yes! Golf for $1.65 million
Adams Golf, a golf equipment manufacturer, has bought the Colorado-based putter company, Yes! Golf in an online auction.
The Chief Executive Office and President of Adams Golf, Chip Brewer revealed the news in a press conference held on Wednesday.
He said, “We have been looking for an attractive avenue into the putter market for some time and believe the Yes! Golf brand and technology platform provides us just such an opportunity. Yes! Golf provides Adams Golf compelling putter technology and a positive
brand image, including ongoing tour usage based on the performance of the product alone. The Yes! Golf brand will likely benefit from the inclusion into our operational infrastructure and we intend for it to serve as a source of future growth for our company.”
Adams Golf, which is known for its extensive distribution, lacked putter technology. On 7
November, 2010 when Yes! Golf filed for bankruptcy, the Board of Directors of Adams Golf decided to enhance their gear range by acquiring the company.
They took part in an online auction that started on Tuesday and outbid six competitors in the race. According to the details given by the CEO, Adams Golf bought the entire intellectual property and assets for $1.65 million. Interestingly, the intellectual
property bought in auction, includes the C-groove technology, which made the Yes! Golf putters the finest in the world.
Adams Golf has been suffering from with their putter sales. Despite its utmost efforts, the brand was unable to grab the putter market. However, after this takeover, the brand will compete for the niche and market itself in a completely new segment.
Nick Green, a golf analyst with MacDuff Consulting in Bethesda, believes that the patented C-Groove putter technology of Yes! Golf is a good move for Adams.
He said, “Adams would seem to have made a great deal. They do not have a putter in their current product line; they have terrific distribution, and have been on a roll with their equipment in the last few years. The timing of the acquisition should work
in Adams’ favour as well.”
Yes! Golf experienced a sudden decline in sales from 2007 to 2010. They fell from $10.2 million in 2007 to approximately $2.4 million in 2010 and hence had to liquidate the assets in favour of the shareholders. Adams Golf made a move and bought the assets
of the sinking company.
With PGA Merchandise Show coming up, Adams Golf can now cash on the opportunity of selling its new putters in the golf industry. The annual show takes place every year in January to promote the golf industry and various manufacturers. Suppliers from 22 countries
are said to make an appearance at the show. The new range of putters and golf accessories will be displayed in the show in front of various investors.
Adams Golf has made a clever move with this deal, but it still requires a subtle marketing strategy. After all, they have to rebrand themselves in the market of putters which they lost a long time back. How well will they be able to do it, remains to be
seen.
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