Two of my favorite things to read and talk about collide with updates on the IPO for the owner of the Titleist and FootJoy brands, Acushnet Company.
Acushnet has enlisted the help of Solebury Capital in exploring the potential Initial Public Offering (IPO) of shares of stock in the two companies, according to a report by Reuters.
What Is An IPO?
An Initial Public Offering, or IPO, is the first time shares of stock become available for the general public to buy. Basically, it is a private company becoming a public company with its shares traded on a stock exchange. If you need it broken down further, this article probably wasn’t up your alley from the start (but thanks for reading!).
(photo courtesy of footjoy.com)
Own a piece of the #1 ball on the PGA Tour and the #1 shoe in golf.
Fila Korea Ltd acquired Acushnet in 2011 for $1.23 billion with plans from the beginning to spinoff the business. The IPO would enable Fila to liquidate the private equity.
Since being acquired by Fila, Acushnet’s earnings have increased from $120 million in 2011 to $185 million (I thought the business of golf was struggling?). Analysts have estimated the IPO to be worth around $1.8 billion (I thought thousands of golfers were leaving the sport?). The listing of Acushnet should be completed sometime in 2016.
There’s no word on whether shareholders would have the ability to vote on the destruction of all remaining stock of FootJoy’s new HyperFlex shoes. Man, those things are ugly.
*Update from Chris 9/29/15: We published more recent information on the Acushnet IPO here.
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