South Korean fashion retailer F&F Co. said it has hired Goldman Sachs to advise on the acquisition of TaylorMade and that it would take legal action if the owner of the global golf products maker proceeds with a separate sale process.
In late June, South Korean fashion retailer F&F Co., a strategic investor in TaylorMade Golf Co., said it was making a bid for the golf equipment and apparel brand.
The move came 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.
At the time, 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.
A report by the Korea Herald noted that a sale of TaylorMade could value the business at up to Korean ₩5 trillion (~$3.5 billion). The company has reportedly retained JPMorgan and Jefferies as lead managers to handle the sale.
On Monday, F&F reiterated that it participated in the 2021 TaylorMade acquisition as a strategic investor and, as the largest investor, secured written Consent Rights over key management matters, including borrowing, major business decisions, and equity sales.
The company stated, “We are methodically preparing to exercise our Right of First Refusal (ROFR), should circumstances warrant, to ensure alignment with our original investment thesis,” adding, “Our engagement with Goldman Sachs equips us to execute a disciplined and impactful strategy to successfully acquire TaylorMade.”
F&F clarified that it has not consented to Centroid’s current efforts to sell TaylorMade, viewing the process as a significant breach of its contractual consent rights. “Independent of our acquisition plans, we are fully prepared to deploy all available legal and contractual measures to hold Centroid accountable for its violations,” the company asserted.
F&F stated that it is actively assessing a comprehensive array of strategic pathways while strengthening its stance to safeguard its investment interests in TaylorMade through the robust enforcement of its contractual rights, including potential legal action.
Under the terms of the acquisition of TaylorMade by Centroid, F&F stated that it invested Korean ₩358 billion ($258 million) of the subordinated equity investment, totaling Korean ₩619.2 billion, making it the largest equity investor as a limited partner.
Centroid has not disclosed the financial details of the 2021 acquisition.
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
