Centroid switches partner to F&F for TaylorMade acquisition F&F's $346 mil investment equals to nearly 50% of project fund for acquisition

Translated by Kim So-in 공개 2021-07-22 07:47:02

이 기사는 2021년 07월 22일 07:44 더벨 유료페이지에 표출된 기사입니다.

South Korea’s mid-sized fashion company F&F will join Centroid Investment Partners’ acquisition of global golf equipment company TaylorMade, with The Nature Holdings pulling out of the deal.

Local clothing firm F&F will join Centroid in a buyout of TaylorMade as a strategic investor, industry sources said Tuesday. The company will invest 300 billion won ($260 million) in equity and the remaining 100 billion won in mezzanines for a 49.51% stake in a project fund that will be created for the TaylorMade acquisition.

The outfit maker, dedicated to licensed productions for brands like MLB and Discovery, has decided to team up with Centroid to expand its presence into the golf wear market.

TaylorMade’s 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%).

In a bidding last month, Centroid picked The Nature Holdings as a partner for the acquisition of TaylorMade.

But Centroid has faced a challenge in raising funds from institutional investors, with some limited partners withdrawing their initial investment plans.

Deep-pocketed F&F has moved nimbly to seize an opportunity, approaching Centroid again. The two parties entered discussion and F&F decided to invest 300 billion won to 400 billion won over the weekend.

Centroid has guaranteed the same investment conditions it had given to The Nature Holdings. F&F has secured the right of first refusal when Centroid divests its investment in the future. Centroid, however, didn’t grant a call option to the company.

The Nature Holdings, which already issued convertible bonds worth 50 billion won for the deal, met with Centroid over the weekend and the two sides mutually agreed to cancel the investment.

Through is partnership with F&F, Centroid plans to complete the acquisition as early as the end of July. (Reporting by Se-hun Jo)
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