Korean PE buys global golf brand Acushnet

The investment group was led by Fila Korea and Mirae Asset Private Equity, a division of the Mirae Asset Financial Group with approximately $100 billion of AUM. The National Pension Service of Korea - the globe's fourth-largest pension fund - and the Korea Development Bank, Korea's largest government-owned bank, also participated.

The Korean consortium won out against competitors such as Blackstone and Adidas, despite The Korea Times suggesting that Adidas proposed a higher price. Adidas' process was reportedly stalled after questions of unfair corporate advantage emerged at the prospect of combining Acushnet's brands with Adidas' TailorMade label.

Consumer goods holding company Fortune Brands estimates it will see $1.1 billion of net proceeds after taxes and expenses. This comes as Acushnet announced more than $1.2 billion in net sales in 2010 - 50% generated outside the US - and operating income, before charges, of $80 million.

Acushnet is a leading golf equipment company globally and owns labels such as Titleist, which claims to be the world's number-one golf ball brand, and FootJoy, the top golf shoe and glove maker. Acushnet's Korean backers say that they aim to grow the brand's presence in Asia, which is fitting given their familiarity with the region's consumers and Fila Korea's own knowledge of the sporting goods landscape.

Morgan Stanley and Centerview Partners were advisors to Fortune Brands, and Chadbourne & Parke was legal advisor. Fila Korea and Mirae were advised by Nomura and the Korea Development Bank, with McDermott, Will & Emery appointed legal advisor. The sale has already been approved by the Fortune Brands and Kila Korea's board of directors, thought the completion of the deal is subject to specific closing conditions and regulatory approvals. The parties aim to close the deal this summer.

Korea has long represented one of Asia's top buyout markets, which undoubtedly aided Acushnet's acquirers in the bidding process. Acushnet's $1.2 billion price tag has also earned it the top Korean private equity deal in 2011, nearly matching the aggregated total of PE transactions last year. According to AVCJ data, Korea saw a total of 39 deals, both disclosed and undisclosed, in 2010 for a total of $1.6 billion. This accounts for a fraction of the activity seen in 2009, when 64 deals were brokered in the market for $6.4 billion.

More information can be seen from AVCJ's 2011 Private Equity and Venture Capital North Asia report, which will be published in early June.

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• Topics
• North Asia
• Consumer
• National Pension Service (Korea)
• Korea Development Bank