WEB NEWS Acquisition Activity
The adidas Group and Adams Golf, Inc. today announced that the TaylorMade-adidas Golf business segment has entered into a definitive agreement to acquire all of the outstanding shares of Adams Golf for $10.80 per share in cash. The transaction value is approximately $70 million (approximately € 53 million), which represents a premium of approximately 71% to the share price prior to Adams Golf's announcement that it was examining strategic alternatives on January 4, 2012. - See more at: http://www.globenewswire.com/news-release/2012/03/19/471088/249562/en/TaylorMade-adidas-Golf-Company-to-Acquire-Adams-Golf.html#sthash.pd0R0qbx.dpuf
Source
Research
Our blog note from 2/10/2012
Company just received a favorable settlement resulting from a past litigation issue. EPS growth has been inconsistent for some time. However, the company believes the golf industry is in the midst of gradual rebound. Company has also engaged Morgan Stanley to help evaluate strategic alternatives to enhance shareholder value.
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Resolution of Legal Issues
PLANO, Texas, Dec. 15, 2011 (GLOBE NEWSWIRE ) -- Adams Golf, Inc. (Nasdaq:ADGF) ("Adams Golf" or the "Company") today announced that it has settled its lawsuit against Zurich American Insurance Company ("ZAIC") alleging, among other things, that ZAIC wrongfully declined coverage to Adams Golf concerning the class action lawsuit arising out of the Company's initial public offering.
The settlement agreement with ZAIC provides for a payment of $7.65 million by ZAIC to Adams Golf no later than January 4, 2012. Pursuant to the terms of the settlement reached by Adams Golf in the underlying class action lawsuit, the Company is required to pay the class action plaintiffs $1.25 million from its recovery against ZAIC in the coverage lawsuit. After payment of this amount to the class action plaintiffs, the Company is entitled to receive approximately $6.4 million, or $0.82 per outstanding share, that would be added to cash reserves until such time as management and the board of directors determine the optimum use for the proceeds.
"We are pleased with this outcome," said Mr. Chip Brewer, CEO and President of Adams Golf. "It is a material recovery for the company and we are delighted to have the matter behind us."
Comments & Business Outlook
PLANO, Texas, Jan. 4, 2012 (GLOBE NEWSWIRE ) -- Adams Golf, Inc. (Nasdaq:ADGF) ("Adams Golf" or the "Company") today announced that its Board of Directors has unanimously decided to explore and evaluate strategic alternatives to enhance shareholder value. The Board of Directors intends to consider the full range of available options. The Company has engaged Morgan Stanley & Co. to assist in the evaluation of these alternatives.
The Company has not made a decision to pursue any specific strategic alternative at this time, and the exploration of strategic alternatives may not result in any specific action or transaction. There is no definitive timetable for the process. The Company does not intend to provide updates or make any further comment regarding the evaluation of strategic alternatives unless a specific action is approved by the Board of Directors or the process is concluded.
"We are pleased to be working with Morgan Stanley on this initiative," stated Chip Brewer, CEO and President of Adams Golf. "They bring strong market insight and a wealth of experience in these matters. As we continue to strengthen the Adams Golf brand, the entire board thinks the current market valuation is inconsistent with the company's performance and future prospects."
13D and 13G Activity
Several different 13D filings prior to buyout proposal from Taylor Made for $10.80 per share.
