In the February Issue of GolfWorld Magazine the article, Acushnet sale a slow, step-by-step process, E. Michael Johnson reported on the process Acushnet Company is taking on finding a buyer. The Fortune Brands have had a long and profitable run with the Acushnet Company with their line of Titleist balls and clubs; FootJoy shoes and gloves; and the Pinnacle product line. Unfortunately, the golf industry is taking a huge hit with the slumping economy and the decline in interest and financial ability of the consumer drive market to playing golf.
The first sign of issues in the Fortune Brand was shown when they surprisingly sold off their Cobra brand. Now, they are taking a more deliberate approach to dumping a drain in profits with issuing out the Teaser document to potential buyers of Acushnet through Morgan Stanley, the investment firm selected to find suitable buyers.
One can only wonder if the pricing of the Titleist product line will be part of what the new owners will have to consider to keep the top line clubs and golf balls at the top of the equipment market. Guess us Titleist fans will have to sit tight to see what happens.
