Centroid picks The Nature Holdings to join acquisition of TaylorMade Korean PE firm and apparel company to establish joint venture

Translated by Kim So-in 공개 2021-06-16 08:06:42

이 기사는 2021년 06월 16일 08:04 더벨 유료페이지에 표출된 기사입니다.

Seoul-based private equity (PE) firm Centroid Investment Partners has selected South Korean mid-size apparel manufacturer The Nature Holdings as its strategic partner in its acquisition of California-based company golf equipment company TaylorMade.

Centroid has picked The Nature Holdings as its equity investor to inject 100 billion won ($89.6 million) in the buyout on Sunday, according to industry sources.

Centroid last month signed a stock purchase agreement to buy a 100% of TaylorMade for around $1.7 billion from U.S.-based PE firm KPS Capital Partners. The Seoul-based firm plans to finance 600 billion won from equity investments, 300 billion won from mezzanine investments and 900 billion won from acquisition financing, with some coming from the strategic investor in equity investments.

Major retailers like Lotte, Shinsegae, and GS, Nexen Tire, Kakao, CJ as well as mid-sized apparel manufacturers including F&F alongside The Nature Holdings submitted their proposals to participate in the buyout deal.

Centroid has picked The Nature Holdings as its partner to bolster fashion line for the international brand. The apparel business accounts for 2% of TaylorMade’s total revenue, significantly lower than Titleist’s 26% and Callaway Golf’s 22%. Centroid has seen growth potential in the apparel fashion business as Korean golfers spend the largest amount of money per person on golf equipment and clothing in the world.

The Nature Holdings is credited for growing National Geographic brand as one of popular fashion brands in Korea. The Nature Holdings’ revenue has grown at an annual average rate of more than 60% since 2017 thanks to National Geographic’s rapid growth.

Centroid and the apparel manufacturer are highly likely to establish a joint venture. With Centroid selecting its strategic investor, the fundraising process is expected to speed up. The deal is likely to close next month. (Reporting by Se-hun Jo)
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