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Big new deal for Taylor
Made
TaylorMade-adidas Golf parent Adidas-Salomon AG has won the exclusive rights
to license and distribute Dunlop Slazenger Group Ltd.'s Maxfli and Slazenger golf
brands, company officials have announced.
Dunlop Slazenger, in turn, will buy TaylorMade's golf ball production facility
and take over manufacturing and supply responsibilities for the Maxfli, Slazenger
and TaylorMade balls. This move ends Adidas' efforts to get into the golf ball
business. For the past several years, Taylor Made has tried to make inroads into
the highly competitive ball market with its InerGel line of balls but met with
little success.
The deal to license the Maxfli and Slazenger ball brands makes TMaG an immediate
major player in the ball market, particularly with the Maxfli brand that includes
the Revolution line of golf balls. Maxfli's new Noodle golf ball, which sold well
in test markets this fall, is expected to make its formal debut at the PGA Merchandise
Show, Jan. 24-27 in Orlando.
TaylorMade-adidas Golf strengthens its presence as a fully-integrated golf
company offering products with leading positions in all major golf categories.
Adidas-Salomon is already the world's second-biggest sportswear and equipment
maker by sales after Nike.
In particular, the company will grow its position in golf balls, which currently
represents about 25 percent of the global $6 billion golf market. Through its
integration of Maxfli and Slazenger balls, TMaG will control a U.S. market share
of 8 percent, officials said.
For Dunlop Slazenger, this agreement allows the group to focus on its core
golf competencies: manufacturing, and research and development. The deal also
provides DSGL with additional exposure through TMaG's global distribution capacity
and promotional tour strength.
Combining production of the Maxfli, Slazenger and TaylorMade brands at Dunlop
Slazenger would yield cost savings as a result of economies of scale, they added.
Both companies could see higher sales as a result of the agreement, which takes
effect on Jan. 1, they added.
In the deal, Adidas-Salomon also receives a 15-month option to buy the Maxfli
brand and to acquire an unlimited exclusive free license to sell and develop Slazenger
golf products.
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