Updated: Acushnet Sells Cobra to Puma Golf
by courtgolf on Mar 10, 2010 10:28 AM EST
14 comments
Acushnet just announced the sale of their Cobra brand to the Puma corporation. Fortune Brands, parent of Acushnet, issued a release about the sale. In the release, Wally Uihlein, CEO of Acushnet Company, said, “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."
Puma acquires "the Cobra brand, as well as related inventory, intellectual property and endorsement contracts."
Cobra had been the technology forward division of Acushnet for a number of years, but their tour budget was slashed at the end of 2009 and had a scant line for 2010.
“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 in a release.
“Cobra Golf has a history of innovative performance products fused with an edge and is therefore a perfect fit for PUMA. With Cobra Golf, PUMA will capitalize on the many opportunities in the golf category and upside potential ahead of us.”
Since Puma has acquired all rights to Cobra, including endorsement contracts, will we see Rickie Fowler with Cobra clubs in his bag any time soon? Perhaps Camilo Villegas will be wearing Puma? Could you imagine JB Holmes in those orange Puma pants?!
You can count on Puma doing whatever it takes to make it worth his while to switch.
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I guess it would probably help to post the link to see the entire press release and part of the release itself…
http://www.fortunebrands.com/news/releasedetail.cfm?ReleaseID=450833
FORTUNE BRANDS ANNOUNCES AGREEMENT TO SELL COBRA GOLF BRAND TO PUMA
Deerfield, Illinois, March 10, 2010 – Fortune Brands, Inc. (NYSE: FO) today announced a definitive agreement for the sale of its Cobra golf brand to PUMA AG. The sale includes the Cobra brand, as well as related inventory, intellectual property and endorsement contracts.
“Divesting the Cobra brand will enable us to drive shareholder value by concentrating our golf investments behind Titleist and FootJoy, which represent our highest return growth opportunities in golf,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “With Titleist and FootJoy, we will continue to have the leading worldwide position in the attractive golf consumer products category, and we are very well positioned to drive growth as the market stabilizes in 2010 and recovers in the years ahead.”
Titleist is the #1 ball in golf and FootJoy is the #1 shoe and glove in golf. As the company’s flagship golf club brand, Titleist generates the majority of the company’s sales in the golf club category. In 2009, Titleist golf club sales grew in a global golf club market that declined at a mid-teens rate.
“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, CEO of Acushnet Company, the golf business of Fortune Brands. “As we continue innovating, competing for market share in the U.S. and expanding internationally, we believe Titleist and FootJoy will be the industry’s most powerful platforms for profitable long-term growth. 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.”
Acushnet will provide transition services to PUMA on behalf of Cobra – including production, distribution, field sales and customer service – for an agreed-upon period of time beyond closing of the sale. All Acushnet employees dedicated to the Cobra brand are expected to become employees of PUMA upon completion of the transaction.
Fortune Brands expects the sale to be approximately two cents dilutive to 2010 earnings per share before a one-time gain on sale of approximately five cents per share. Financial terms of the pending transaction were not immediately disclosed.
The sale is subject to customary closing conditions and regulatory approvals. The companies anticipate the transaction will close early in the second quarter.
"this ball will fit in that fairway"
Why CG,
there ya have it….the money honey….“divesting the Cobra brand will enable us to drive shareholder value”….I do believe that is the same rhetoric used by the big investment banks that needed bailing out , and also by Freddie Mac and Fanny Mae as espoused by that idiot Barney Franks just prior to their collapse…I , don’t expect either golf company to have that type of effect on us as the financial sector did….will be interesting to see who ends up on Cobra’s staff and ya, who ends up looking like peacocks….STUB
Beats me – sounded more like Titleist deciding that they were putting too much money into Cobra than they were getting back out of it for their traditional line of Titlelist clubs. Titleist still makes more money on ball sales than anything else in their equipment lines.
Pretty sure Acushnet and Titleist won’t be calling Barry O or Barney (purple or political) for a “bailout” anytime soon.
Rickie Fowler is the centerpiece since he signed with TItleist AND Puma when he turned pro.
"this ball will fit in that fairway"
both…for the time being at least. He signed a multi-year deal with Titleist, so it’s going to take a big buy-out from Puma, or Fowler to play his way into the toilet so far Titleist doesn’t want him around anymore. I’m guessing buy-out.
"this ball will fit in that fairway"
If Fowler carries clout, which still an if.......
then he should stay with titleist, and make Puma choose to stay with him, or move on. This is his profession, which is more than an endorsement deal. If he’s happy with Titleist clubs, then stick with ‘em ricky. Nobody will want you if you make a club choice which derails your career. Win, and they’ll be knocking down your door.
"The game is swell when it's played well."
by Fairways and Grins on Mar 10, 2010 10:44 PM EST up reply actions
Clubs in the bag are fairly easy to get around. Nike had the same problem with Tiger when they started. All they had to do was find the best forged club guy in the world to make what he wanted even though Nike didn’t have anything like them in their catalog.
The tough part is going to be getting him out of his Titleist contract…but that’s just going to be a money issue.
"this ball will fit in that fairway"
Great move by Puma. If, in fact, they
want to get into golf equipment, versus just golf apparel. Cobra has everything Puma needs to hit the ground running with equipment. For some reason, Tiger never did get Nike club sales to go where Phil Knight thought they might, maybe Puma can use Fowler to kick start something…
I'll keep an eye out for you...at www.oneeyedgolfer.blogspot.com
by One-Eyed Golfer Guy on Mar 10, 2010 5:16 PM EST reply actions
If Puma acquires Tang juice next,
I’ve got a few marketing taglines.
Just got a note from a friend who is a Titleist/Cobra rep. From what he tells me, we won’t see anything different on the marketing side of things until at least late August, and even then, you and I won’t see any real changes.
Acushnet always puts top priority on the balls, then the Titleist clubs, and Cobra came in a distant third in priority and backing. I always thought that was a shame since Cobra came up with such good clubs for the average players.
"this ball will fit in that fairway"
Court,
that kind of tells us something…Where is the most profit, dollars and cents wise?…yep, 50.00 for a dozen rocks….Hey Jumpin….what do you think it costs to make those balls your going to pay EM?….STUB
What is a shame is Titleist only
allows it’s resellers to make $5-$6 per dozen at $46 (which is normal retail other than golf courses)
Don’t forget Footjoy. They do sell a few shoes and gloves. Also, Scotty Cameron and Pinnacle (hey, STUB, you talk about ROCKS). At least they are $12.00 per dozen rocks…
I'll keep an eye out for you...at www.oneeyedgolfer.blogspot.com
by One-Eyed Golfer Guy on Mar 13, 2010 9:53 AM EST reply actions
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