This article was published on March 18, 2025, at 3:15 p.m. on the ChosunBiz MoneyMove site.
F&F, which has been in conflict with the private equity fund operator Centroid Investment Partners regarding the management rights of the world's top three golf brand TaylorMade, has ultimately decided to exercise its preemptive right and is in contact with potential ally candidates. As the valuation that third parties entering the acquisition battle propose can change the amount that F&F has to pay, F&F intends to observe the moves of competitors and strategize for a successful acquisition.
Industry sources say that the private equity firm 'L. Catterton,' affiliated with the world's largest fashion company Louis Vuitton Moët Hennessy (LVMH), is mentioned as a potential partner for F&F in the TaylorMade acquisition battle. It is reported that domestic financial companies, including MERITZ Securities, have also shown interest in providing acquisition financing.
According to investment banking industry sources on the 18th, F&F has recently leaned towards pursuing 'management rights acquisition through the exercise of preemptive rights' rather than 'opposing the sale through the exercise of consent rights.' It is said that F&F believes using preemptive rights is more practical than disputing the legal effects of consent rights.
Centroid has recently decided to sell the management rights of TaylorMade and has selected JP Morgan and Jefferies as its lead managers.
F&F, which participated as a strategic investor (SI) when Centroid acquired TaylorMade, holds preemptive rights. If a third party proposes to acquire Centroid, F&F has the right to first acquire the management rights under the same conditions within 14 days. Additionally, F&F also holds consent rights for significant matters, and has maintained its stance of opposing the sale by exercising its consent rights.
In this regard, Centroid has claimed that the consent rights held by F&F do not include the right to oppose the sale of management rights. It is reported that a local law firm representing TaylorMade's U.S. headquarters recently sent an email to shareholders (investors), including F&F, reiterating this point. The implication is that there is no legal right to block the sale of TaylorMade.
As Centroid expects about 5 trillion won as the valuation for TaylorMade, it is reported that F&F is considering options to secure between 3 trillion won and 5 trillion won.
F&F is said to believe that if the sale price is set at around 3 trillion won, it would be possible to secure financing solely for the acquisition of management rights. F&F has reportedly contacted multiple financial firms, with MERITZ Securities showing interest.
If the sale price is determined to be between 4 trillion won and 5 trillion won as Centroid expects, it seems that financing solely through acquisition financing will not be feasible. Therefore, similar to its previous strategy with Centroid in pursuing the TaylorMade acquisition, it appears F&F will need to form partnerships with financial investors (FIs).
Industry sources report that the LVMH-affiliated private equity fund L. Catterton is interested in TaylorMade. This company has also considered acquiring Callaway from an Asian regional fund and is said to be very interested in sports-related brands.