Albany, GA, November 20, 2006 – MacGregor Golf, maker of MACTEC premium golf equipment, announced today that it has completed its acquisition of the Greg Norman Collection apparel business ("GNC") from the adidas Group.
The golf equipment and apparel companies, with combined annual sales of more than $150 million, will be operated as separate business units, with GNC president and CEO Suzy Biszantz and MacGregor president Reid Gorman each reporting to MacGregor Golf’s Chairman and CEO, Barry Schneider.
"This acquisition is very strategic. It provides product diversity around a common base of customers and consumers. It adds scale to our business which is important in a consolidating industry. And it leverages our international infrastructure, particularly in Asia, to aggressively grow Greg Norman Collection globally," said Barry Schneider, CEO and majority shareholder of MacGregor Golf Company. "I am honored that Greg Norman has joined MacGregor Golf as a substantial shareholder and Board Member, and look forward to his increased involvement in areas such as R&D, sales & marketing."
"From my perspective, this is by far the biggest business deal I have ever made. I believe in the vision Barry has laid out for MacGregor Golf, and I feel a tremendous sense of pride and gratification in acquiring a significant ownership stake in the brand that bears my name." said Greg Norman. "I look forward to working with the existing management team to build on the momentum we have established."
"While we have experienced tremendous growth over the past four years, I believe we still have significant opportunities in all distribution channels. I look forward to continued growth under MacGregor Golf, especially in Japan and Korea where they are exceptionally strong," said Suzy Biszantz, President and Chief Executive Officer. "Additionally, our employees and customers are excited about Greg Norman’s personal investment and commitment to GNC."
In acquiring the Greg Norman Collection, MacGregor Golf inherits a company that has experienced significant sales increases across all distribution channels over the past four years. The Collection has grown by over 90% since 2002 and recorded 16 consecutive quarters of sales and profit growth in a relatively flat golf market. Its domestic golf business has doubled over the same time period due to strong growth in premier green grass and resort shops. Furthermore, distribution in off-course golf shops decreased by 15%.
Much of the success over that time period can be attributed to the continued success of its Play Dry® assortment of moisture-wicking technical products. Additionally, the company launched a Women’s Collection, Corporate Sales Division and most recently its Signature Series, all of which have been successful additions for GNC. The company is approaching $80 million in global sales, excluding retail outlet operations that were not included in MacGregor Golf’s acquisition of the brand.
JPMorgan advised MacGregor Golf on the transaction. Financial details will not be disclosed.
About MacGregor Golf
MacGregor Golf has a storied 109-year history filled with innovation and PGA Tour success including a record 59 Majors. MacGregor Golf designs and manufactures a complete line of innovative golf equipment that makes the game easier and more fun for all golfers. MACTECâ?¢ drivers, fairway woods, irons, wedges and Bobby Graceâ?¢ putters are marketed under the MacGregor brand.
About Greg Norman Collection
Greg Norman Collection, a subsidiary of MacGregor Golf Company is a leading worldwide golf lifestyle apparel and accessories brand. Established in 1992, Greg Norman Collection is inspired by one of the world’s leading golf professionals, the man they call "The Shark." Reflecting his adventurous spirit and confident, independent style, the Collection captures Greg Norman’s powerful elegance, enthusiasm and passion for an individual design sense.
About the adidas Group
Headquartered in Herzogenaurach, Germany, the Group has more than 25,000 employees worldwide and expects sales of around â?å 10 billion in 2006.
Contact:
Dennis Blake at the Blake and Bosworth Group
(860) 878-5586
dblake@blakeandbosworth.com
