이 기사는 2021년 06월 18일 06:41 thebell 에 표출된 기사입니다.

Seoul-based Centroid Private Equity and The Nature Holdings’ joint acquisition of golf equipment brand TaylorMade will likely boost future growth prospects of the South Korean apparel manufacturer, which seeks to use the deal to expand its presence into the golf wear market.

The two firms are discussing the golf brand’s broader growth strategy and composition of the board of directors, with a target to complete the takeover by next month, industry sources said.

The Nature Holdings was founded in 2004 by its chief executive Park Young-jun. The Kosdaq-listed company develops, manufactures and distributes fashion products under a variety of licensed brands including National Geographic, NFL, Jeep and Vera Wang.

The fashion firm has recorded rapid growth in the past three years, with its consolidated revenue rising at an annual average rate of 61.6% to 291 billion won in 2020. Operating income has more than doubled each year on average in the same period, to 55.2 billion won in 2020.

The stellar growth was largely driven by the success of National Geographic, which the company began to offer in 2013. The Nature Holdings has since expanded the once-outdoor wear brand’s offerings to include bags, camping equipment, sunglasses and shoes. It also entered the Hong Kong and Taiwan markets in 2019.

The company’s cash and cash equivalents increased from 11.7 billion won in 2017 to 85.2 billion won in 2020. Retained earnings also grew thirty-fold to 67.6 billion in the same period.

With the joint acquisition of TaylorMade, the apparel maker is expected to further expand its presence into the golf wear market. TaylorMade, best known for its driver offerings, is one of the leading global golf equipment makers. But its golf apparel business is far weaker than rivals, with the segment accounting for a mere 2% of TaylorMade’s total revenue compared to Acushnet's Titleist (26%) and Callaway (22%).

The Nature Holdings plans to target the golfing population with younger age. South Korea is known for the highest per-person spending on golf wear and equipment in the world.

The partnership between The Nature Holdings and Centroid PE brings to mind the Acushnet deal in 2014. Mirae Asset Global Investments acquired the golf brand in partnership with Fila Korea, which later became the largest shareholder of Acushnet.

Fila Holdings recorded a 25% revenue growth in the first quarter, driven by increased revenue from Titleist which accounted for 65% of the holding company’s total revenue.

Like Fila Korea, The Nature Holdings is likely to increase its ownership in TaylorMade in the future to gain control of the brand. It has the right of first refusal should Centroid PE wants to divest its stake. (Reporting by Eun Kim)