South Korean apparel company F&F, which has been at odds with private equity firm Centroid Investment Partners over control of TaylorMade Golf, is now preparing to exercise its right of first refusal in a bid to acquire the company. As one of the world’s top three golf brands, TaylorMade has attracted significant interest, prompting F&F to explore strategic partnerships and financing options to secure the deal.
Industry sources indicate that L Catterton, a private equity firm backed by LVMH Moët Hennessy Louis Vuitton, is considering partnering with F&F in the bid. Domestic financial firms, including Meritz Securities, have also reportedly shown interest in providing acquisition financing.
According to investment banking sources on Mar. 18, F&F has shifted its approach from blocking the sale through its consent rights to actively pursuing the acquisition by matching a third-party bid. The company determined that enforcing its consent rights would be legally contentious, making the right of first refusal a more viable strategy.
Centroid recently decided to sell its controlling stake in TaylorMade and has appointed JPMorgan and Jefferies as lead managers for the transaction.
As a strategic investor in Centroid’s original acquisition of TaylorMade, F&F holds a right of first refusal, allowing it to match any third-party bid within 14 days. The company had previously intended to exercise its consent rights to oppose the sale, but Centroid has argued that those rights do not extend to blocking a transfer of management control. A U.S. law firm representing TaylorMade’s headquarters recently reinforced this position in an email to shareholders, including F&F, asserting that the company has no legal authority to prevent the sale.
Centroid is seeking a valuation of approximately 5 trillion won ($3.4 billion) for TaylorMade. As a result, F&F is considering financing options ranging from 3 trillion won ($2.25 billion) to 5 trillion won ($3.75 billion) to fund the acquisition.
If the final sale price falls within the lower range of 3 trillion won ($2 billion), F&F believes it could finance the acquisition solely through debt. The company has already engaged multiple financial institutions, with Meritz Securities among those expressing interest.
Should the price reach Centroid’s target range of 4 trillion to 5 trillion won, F&F would likely need additional financial partners beyond conventional acquisition financing. Similar to its previous partnership with Centroid in acquiring TaylorMade, F&F may seek a financial investor to help secure the necessary funding.
Industry insiders note that L Catterton has shown interest in TaylorMade, given its prior consideration of acquiring California-based Callaway Golf (legally Topgolf Callaway Brands Corp.), another top golf brand. The firm has maintained an interest in sports-related brands through its Asia-focused fund, positioning it as a potential partner in the bid.
