Adidas to Acquire Ashworth
Adidas to Acquire Ashworth
10/22/2008
In a $26.5 million deal, Adidas has reached a definitive agreement to purchase Ashworth, Stitches reports. Adidas will pay $1.90 per share of Ashworth stock and will assume $46.3 million of debt from promotional apparel supplier Ashworth. Both are public companies.
In early October, Ashworth stock was valued at $3.75 per share. Stockholders still have to approve the buy out, which is expected to be finalized by the end of the year. Ashworth's has faced financial difficulties this year losing $16 million and seeing sales slowing.
Adidas is the second-largest sporting goods producer in the world behind Nike. Stitches reports that Ashworth's vice president of corporate division, Tim Cronin, says the Ashworth label will remain separate from Adidas.