South Korean fashion retailer F&F Co., a strategic investor in TaylorMade Golf Co., is making a bid for the golf equipment and apparel brand. The move comes as Centroid, the South Korean private equity firm that acquired TaylorMade in 2021, in mid-May confirmed plans to divest its controlling stake in TaylorMade, opting for an outright sale over an initial public offering.
The company reports in the Korean won (₩) currency.
A report by the Korea Herald noted that a sale of TaylorMade could value the business at up to ₩5 trillion (~$3.5 billion). The company has reportedly retained JPMorgan and Jefferies as lead managers to handle the sale.
F&F backed Centroid’s $1.7 billion acquisition of TaylorMade from KPS Capital Partners by reportedly contributing ₩550 billion (~$4 million).
In a statement issued Wednesday, June 25, F&F Co., led by CEO Chang Soo Kim, claims to be the largest investor in TaylorMade and that its intent has always been to acquire the company. F&F argued that the terms of the investment require Centroid to obtain prior consent before putting TaylorMade on the market and to grant F&F preferential rights over other bidders to acquire the company. It threatened legal action to block Centroid’s sale of TaylorMade without its consent.
F&F said, “In 2021, F&F made a substantial investment in TaylorMade with the goal of acquiring the company, securing key contractual rights, including consent rights and a right of first refusal, to support this objective. These provisions were deliberately structured to advance F&F’s acquisition goal. However, despite these rights, a Korean private equity firm, Centroid, has unilaterally initiated the sale of TaylorMade without obtaining F&F’s prior consent, prompting serious concerns.
“F&F will take all available legal and contractual measures to hold the responsible parties accountable,” the company stated. “We remain steadfast in our original investment objective and will deploy all necessary resources to pursue this goal.”
F&F established itself as the Asian distributor of labels such as Benetton in the 1990s. The group holds various licenses, including one for U.S. Major League Baseball, and owns brands such as Italian down jacket label Duvetica, Korean urban sportswear brand Discovery Expedition, New York-based luxury sportswear brand Sergio Tacchini, and its beauty brand Banila Co.
Centroid said it initially aimed to list TaylorMade on the New York Stock Exchange, where the two other largest golf equipment makers, Acushnet and Callaway, are traded.
Image courtesy TaylorMade Golf Co.
