When Fortune Brands announced it would be spinning off into three separate units – one for its golf, one for liquor and the other for home goods – a few favorites developed among observers to take ownership of the golf business headed at Acushnet.
Nike, TaylorMade-adidas, Srixon and Cleveland parent Sumitomo Rubber Industries – even a group potentially headed by Acushnet CEO Wally Uihlein – were rumored potential bidders. But Callaway Golf? They were ruled out to go it alone. They may not have much debt, but they simply didn’t have the cash to pony up some $1 billion-plus – the expecting selling price for the golf giant.
Well, with a private equity partner, Callaway does and, according to Reuters, they have that partner in Blackstone Group – a big player in that space.
Final bids for the company are due May 9, according to the report. If the submitted second round bids do not satisfy Fortune Brands, the golf unit could simply be spun off into another company with no sale required.
Of course, Callaway and Acushnet are still mired in a multi-year lawsuit over ball patents related to the Pro V1 golf ball. Callaway plans to appeal a final judgment made this week in favor of Acushnet in the initial suit filed in 2006, as well filing a new suit.
