Acushnet Talking To Banks For A Possible IPO?

Bloomberg's Vinicy Chan and Alex Barinka report what has long been considered an inevitable conclusion to Acushnet's purchase by Fila Korea, Ltd. in 2011.

Others with knowledge of the value creation world say it's typical due dilligence work and doesn't mean the company behind Titleist is going public.

From the report:

The company is soliciting pitches from a number of banks for the IPO, which could take place next year, said the people, who asked not to be identified because the information is private. Acushnet could fetch a valuation of about $2 billion, according to the people. The size and timing haven’t been decided and could change, the people said.

Comments

[Brad VanHalen]

I'd buy it, what other company do you know which sells its products to customers who plan to lose the product sooner then later?

[Pat(another one)]

I wonder if going on the public market, and everything that entails, will lead Titleist down a TaylorMade/Callaway path? Growth, Growth , Growth!! Wall Street wants Growth!

[BDF]

I agree with Pat, I hope this does not move the Titleist brand down the path of Taylor Made.

[Bud]

Who in their right mind would invest in a golf business today?

[DTF]

"I wonder if going on the public market, and everything that entails, will lead Titleist down a TaylorMade/Callaway path? Growth, Growth , Growth!! Wall Street wants Growth!"

Yes. There is no other way.

"Who in their right mind would invest in a golf business today?"

Remember they couldn't get an IPO done last time and if anything trends in the golf "industry" sure seem worse now...

[DTF]

I had completely forgotten that this trial balloon was first floated back in January of this year: http://www.geoffshackelford.com/homepage/2015/1/6/acushnet-preparing-for-an-ipo.html

[RLL]

If/when an IPO goes through, we'll know that the authorities are about to actually do something about the golf ball by either limiting or rolling it back on distance.

[DTF]

RLL what's the connection?

[RLL]

They will want to unload equity on the public when they believe their golf ball profits are soon to be crimped...

[DTF]

Ahhh, gotcha. I think the institutional investors will probably be able to see through a ruse like that ;)

As an aside, I'm not sure why golf ball profits would be crimped if the ball gets rolled back? Balls will get used/lost at the same rate, won't they? Unless there's a case to be made that large numbers of golfers quit the game in the face of a rollback?

[smails]

"Remember they couldn't get an IPO done last time "

--they couldn't? when was that?

[DTF]

2011

[KLG]

I think I was right before my time ;-) THIS time the company will go for $250M max to some entity with more money than sense.

Still, Brad is on to something at the top of the thread. They do have the market for the major disposable cornered. The total markup for a dozen ProV1s over cost of production has to be at least 900% (from less than 40 cents to $4 each). I have bought my last pair of FootJoys, though. The D.N.A. sucked, out loud, for the price.

[DTF]

Ky if you haven't tried the Snell ball you should check it out. Gives up nothing to the ProV1 and costs $31.99/doz with no tax or shipping. Buy 5 dozen and get a dozen free...gets the price down to $27/doz. Only sold from their site on-line.