MacGregor Golf has agreed to acquire the Greg Norman Collection Apparel business (“GNC”) from the adidas Group. At the same time, it disclosed that Greg Norman has purchased a significant equity stake in MacGregor Golf.
The two companies, with combined annual sales of “more than $150 million,” will be operated post-closing on a consolidated basis with MacGregor Golf's CEO, Barry Schneider, and Norman controlling a majority of the shares.
“The real winner in this transaction is the golf consumer. Greg Norman is totally engaged in this business, and his unique talent and uncompromising approach will make us a better company,” said Barry Schneider, Chairman and CEO of MacGregor Golf . “We do not want to be the biggest golf company in the world, only the best. This transaction is another step down that strategic path.”
Norman will serve on the MacGregor Golf Board of Directors and will take on a proactive role with sales and marketing, product development and international distribution.
“I have experienced the benefits of Cup Face 360 technology, and believe in the vision Barry has laid out for MacGregor Golf,” said Greg Norman. “And I feel a tremendous sense of pride and gratification in acquiring a significant ownership stake in the brand that bears my name,” Norman said. “Greg Norman Collection has exceeded my expectations over the years, and I am looking forward to working with the existing management team to build on the momentum we have established.”
The transaction is highly synergistic as MacGregor's strong international operations, particularly in Japan and South Korea, will afford Greg Norman Collection a robust and structured entrée into these two coveted Asian markets. At the same time, Greg Norman Collection, which has achieved 12 consecutive quarters of sales growth, contributes quality U.S. distribution and a growing domestic market share.
MacGregor Golf and Greg Norman Collection will maintain their independence with corporate offices in Albany, GA, New York, NY and Canton, MA, respectively. Reid Gorman will continue to serve as President of MacGregor Golf while Suzy Bisantz will remain as President and Chief Executive Officer of Greg Norman Collection.
JPMorgan advised MacGregor Golf on the transaction, which is expected to close during Q4, 2006. Financial details will not be disclosed.
