Adams Golf, less than a year after buying Yes! Golf putters, is exploring options to help boost it’s company’s share price, despite it’s overwhelming successes in the past two years. Their Board of Directors unanimously decided to “explore and evaluate strategic alternatives to enhance shareholder value” says a recent press release on GlobeNewswire. This move is quite shocking when you consider Adams saw a 14 percent increase in sales in 2011 over 2010. A quote from Adams CEO Chip Brewer gives insight into the frustrations Adams is feeling – “The entire board thinks the current market valuation is inconsistent with the company’s performance and future prospects”.
My thoughts? I’m not too sure who would be interested, but one thing is for sure: Fortune Brands – which recently sold Titleist and Footjoy to Fila Korea for a big chunk of change, will be taking a close look at this one.
If you’re worried Adams will be no more – you may find solace in the fact that Adams has stated that for the purchase to take place, the circumstances must be ideal. You can bet, that if there indeed is a purchase of the company, Adams execs will ensure the brand its built will endure.
See the press release here.