Acushnet sets enterprise value at $1.8B in latest IPO filing

ACUSHNET HOLDINGS, the parent company of the Titleist and FootJoy golf brands, estimates it will raise close to $500 million in an initial public offering, which will set the enterprise's value at $1.8 billion. / COURTESY ACUSHNET HOLDINGS
ACUSHNET HOLDINGS, the parent company of the Titleist and FootJoy golf brands, estimates it will raise close to $500 million in an initial public offering, which will set the enterprise's value at $1.8 billion. / COURTESY ACUSHNET HOLDINGS

(Updated 11:26 a.m.)
FAIRHAVEN – Acushnet Holdings Corp., the maker of Titleist golf balls and clubs and FootJoy shoes and performance clothing, aims to raise up to $464 million through an initial public offering.
The Fairhaven-based company, long the maker of the No. 1 ball in golf based on sales, will offer 19.3 million shares of common stock costing from $21 to $24 per share. Following the IPO, Acushnet estimates the company having 74.1 million shares of outstanding common stock, giving it a market value of $1.8 billion (at $24 per share).
The company is owned by web of South Korea-based investors, including Fila Korea Ltd., a leading sport and leisure apparel and footwear company listed on the Korea Exchange, and Mirae Asset Global Investments, among others. The IPO would come more than five years after Fortune Brands sold Acushnet to Fila Korea and Mirae Asset Private Equity for $1.23 billion. Acushnet plans to use the IPO money to augment its growth strategies, including the introduction of new products, growing its equipment, golf and golfwear business lines and expanding globally in such emerging markets as Southeast Asia, according to a federal filing submitted to the U.S. Securities and Exchange Commission on Monday.
“The Titleist and FootJoy brands are both global brands that are well positioned where golf’s growth is anticipated. While we believe that a majority of the near-term growth will be driven by the developed economies, emerging economies, such as the markets in Southeast Asia, represent longer-term growth opportunities. To meet future demand, we are ensuring that local capabilities and expertise in sales, customer service, merchandising, online presence, golf education and fitting initiatives are in place to support our operations,” according to the filing.
As part of the S-1/A filing, Acushnet released financial performance data as well as executive compensation information. The company posted net sales of $1.34 billion in 2011, $1.45 billion in 2012, $1.48 billion in 2013, $1.54 billion in 2014 and $1.5 billion in 2015. So far in the first six months of 2016, the company has posted sales of $903 million, compared with $862.9 million in the same 2015 period. Net income (or loss) for the same full-year periods (2011-2015) were a net loss of $29.2 million (in 2011), net income of $13.9 million in 2012, net income of $19.6 million in 2013, net income of $21.6 million in 2014, and a net loss of $966,000 in 2015. So far in 2016 the company has had net income of $52.1 million, compared with $33.5 million in the first six months of 2015.
Walter “Wally” Uihlein, 67, has been president and CEO of the company and its predecessors since 1995. His 2015 compensation, as outlined in the filing, was $5.4 million, which included a base salary of $995,200, a bonus of $1.12 million and other compensation. Chairman of Acushnet Holdings, Gene Yoon, earned $4.3 million in 2015, based on a base salary of $1.1 million and a cash bonus of $1.12 million, along with other compensation.
The company owns manufacturing, and research and development facilities in Fairhaven; North Dartmouth; New Bedford; Brockton, Mass.; and southern California, as well as in China, Japan and Thailand; along with sales and distribution facilities across the globe. The company expects to list the stock on the New York Stock Exchange under the ticker symbol “GOLF.”

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