Acushnet Company has announced that its parent company, Fortune Brands, Inc., has signed a definitive agreement for the sale of the company to a group led by Fila Korea, Ltd., the owner of the Fila brand globally, and Mirae Asset Private Equity, a private equity firm in Korea.
The deal is said to be worth $1.23-billion.
“The Acushnet Company has long been the trusted steward of two of golf’s most revered and iconic brands and has perpetuated the longest running records of golf equipment success in the game,” said Wally Uihlein, chairman and chief executive officer of Acushnet.
“The Fila Korea and Mirae group understands and appreciates our golf industry leadership, passionate associates and unique and enduring culture. Together, with our new owners, our team is looking forward to strengthening and building upon the global success of the Titleist and FootJoy brands.”
After the acquisition, Acushnet will remain as a stand-alone company through separate operation from Fila Korea, with its worldwide headquarters remaining in Fairhaven, Mass., and led by Uihlein and Acushnet’s current management team.
“We appreciate what Fortune Brands has contributed to the growth of our business over the last 35 years,” said Uihlein. “The support, encouragement and guidance they provided helped fuel our leadership position in the industry and marketplace. Together, we achieved record-setting milestones.”
Established in Italy in 1911, Fila is asport and leisure footwear and apparel brand that is distributed worldwide. The group, led by Fila Korea and Mirae, also includes the National Pension Service of Korea, the fourth largest pension fund in the world and Korea Development Bank, Korea’s largest government-owned bank.
“The acquisition of Acushnet transforms our platform with a stable of premier world class brands,” said Gene Yoon, chairman and chief executive officer of Fila Korea, Ltd.
“We are equally excited to embrace Acushnet’s exceptional management team led by Wally Uihlein. With our extensive knowledge and reach in Asia, we believe that the Acushnet brands have incredible new opportunities for growth in the emerging markets in Asia,” he added.
J.H. Ryu, CEO of Mirae Asset Private Equity, echoed those thoughts.
“We are very impressed with what Acushnet management and employees have accomplished so far,” said Ryu. “We will fully support the company to remain focused on its core golf expertise and continue driving the growth of the industry.”
Uihlein added that will continue to grow in emerging golf markets. “Titleist and FootJoy are powerful global golf brands,” said Uihlein.
“The fact that Asia Pacific represents over 30 per cent of the world’s total golf equipment spending and that South Korean golfers are among the most passionate and organized in the game, is testament to the significant investment in the Acushnet Company by the Fila Korea and Mirae group,” he said.
“They recognize the strength of the brands and opportunities for growth particularly in golf’s emerging regions,” added Uihlein.
The sale is subject to certain closing conditions, including regulatory approvals, and the transaction is expected to close this summer.