Adams Golf extended its reach into the womens side of the golf market last week with the announcement of its planned acquisition of Womens Golf Unlimited (WGU), which includes the trademarks, internet domain names, and customer lists for the Square Two Golf and Lady Fairway brands. The company will pay $600,000 in cash at closing with an earn out payment of up to $400,000 based on sales of WGU branded products in the following 13 months. Closing is expected during the first quarter of 2007 with both parties having the option to terminate the agreement if the deal has not been finalized by February 15, 2007.
“We have grown our women's club business significantly over the past two years and believe that we will further that growth via a multi brand strategy,” stated Chip Brewer, CEO and president of Adams Golf. “Concurrently with this acquisition, we will form a separate business unit to concentrate our focus on this important category. The Women's Golf Unlimited brands will remain separate and distinct in the consumer's eye, but benefit from Adams Golf's overall corporate resources. Both the Adams Golf women's products and the Women's Golf Unlimited brands should benefit from this incremental focus and resources.”