PUMA Acquires Cobra Golf

March 15, 2010
SGB Update

In a deal that had been anticipated for nearly a year, Puma signed an agreement to acquire 100% of the golf equipment brand Cobra Golf from Acushnet Company, the golf business of Fortune Brands, Inc., continuing the trend of consolidation in the golf market. The acquisition includes the Cobra brand as well as related inventory, intellectual property and endorsement contracts and is subject to customary closing conditions and regulatory approvals.

 

In a separate statement, Acushnet announced plans to continue to provide services for an agreed upon period of time beyond the closing of the sale to facilitate a seamless transition.  Acushnet’s Cobra trade accounts and golfers are expected to continue to receive services such as production, distribution, field sales and customer service during the transition period. 

 

>>>What is unknown is how this agreement will affect professional golfers with endorsement contracts that overlap with the three companies. Particularly, Camilo Villegas and Ian Poulter who use Cobra equipment, along with Rickie Fowler, who uses Titleist equipment, but wears Puma apparel. Also, how quickly Puma will begin to produce its own brand of golf clubs is still in question.

PUMA Acquires Cobra Golf

March 10, 2010
SGB Executive SGB Update
by

Puma signed an agreement to acquire 100% of the golf equipment brand Cobra Golf from Acushnet Company, the golf business of Fortune Brands, Inc. The acquisition includes the Cobra brand as well as related inventory, intellectual property and endorsement contracts and is subject to customary closing conditions and regulatory approvals.

“Through the acquisition of Cobra Golf, we reinforce PUMA’s commitment to our sports performance business by strengthening our growing and successful Golf category,” said Jochen Zeitz, Chairman and Chief Executive of PUMA. “Cobra Golf has a history of innovative performance products fused with an edge and is therefore a perfect fit for PUMA, reinforcing our overall mission of becoming the most desirable Sportlifestyle company. With Cobra Golf, PUMA will capitalize on the many opportunities in the Golf category and upside potential ahead of us.”

In a separate statement, Acushnet announced plans to continue to provide services for an agreed upon period of time beyond the closing of the sale to facilitate a seamless transition.  Services such as production, distribution, field sales and customer service will ensure that Acushnet Company’s Cobra trade accounts and golfers continue to receive industry-leading service during this transition period. 

“With the sale of Cobra, we have the opportunity to devote all of our resources to the global growth of our industry-leading Titleist and FootJoy brands,” said Wally Uihlein, Chairman and CEO of Acushnet Company.  “At the same time, Cobra is a strong brand with a heritage of innovation, and we wish the quality associates guiding the brand future success.  Golfers and our valued partners will remain the key focus throughout the impending sale and we are confident that our customers will continue to be serviced to our high standards.”

Pending regulatory approval, the effective date of the sale of Cobra Golf to PUMA is expected to be early in the second quarter, and all business will continue to be conducted by Acushnet Company until that time.  All Acushnet Company associates dedicated to the Cobra business are expected to become employees of PUMA.  Financial terms of the pending transaction were not disclosed.

“Titleist and FootJoy are powerful golf brands that are poised for long-term growth,” continued Uihlein. “This laser focus and our longstanding commitment to deliver superior performance and quality will strengthen golfers trust in the Titleist and FootJoy brands in all global markets.”

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