Daily Business Report-May 12, 2017
The purchase includes the TaylorMade, Adams and Ashworth brands.
Adidas Sells TaylorMade Golf for $425 Million
A day after signing golf’s biggest free-agent to an equipment deal, Carlsbad-based TaylorMade Golf announced the company has been sold by Adidas AG to KPS Capital Partners for $425 million.
The purchase, which includes the TaylorMade, Adams and Ashworth brands, was announced a day after the company signed world No. 2 Rory McIlory to an endorsement deal which is reportedly worth $100 million.
In January, the Carlsbad company signed Tiger Woods to an equipment deal and TaylorMade’s PGA Tour staff also includes world No. 1 Dustin Johnson, Jason Day,the defending champion at this week’s Players, and Masters champion Sergio Garcia.
“TaylorMade is one of the preeminent golf equipment brands worldwide, with leading-edge products that consistently provide consumers a distinct performance advantage over the competition,” David Shapiro, a Managing Partner of KPS, said in a release. “The combination of this iconic brand and KPS’ track record of working constructively with talented management teams to make businesses better will provide the ideal foundation for TaylorMade’s future growth.”
The New York-based KPS manages $5.7 billion in investments in several companies.
“This is the beginning of an exciting new era for TaylorMade, and our entire management team is excited to partner with KPS in this next phase of our growth and continued development of our brands, business and people,” said David Abeles, TaylorMade’s CEO. “Given their strategic vision, operational resources and significant access to capital, KPS is the ideal partner to help TaylorMade build upon its strong momentum.”
About half of the $425 million deal will be paid in cash with the remainder a combination of secured note and contingent considerations. The transaction is expected to be completed later this year and is subject to closing conditions and approvals.
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Homebrewed Startup Prepares to Graduate
SDSU engineering graduates started the company through the ZIP Launchpad
By Gina Jacobs | SDSU NewsCenter
For mechanical engineering graduates Jordan Custodia, Cassandra O’Shea, Sean Bennett and Matthew Penning, Sunday’s commencement ceremony marks the beginning of a new adventure for the founders of Recyclinator, a startup company they developed while students at San Diego State University.
Through the support of SDSU’s Zahn Innovation Platform Launchpad, Recyclinator CEO Custodia and his classmates developed a device that captures carbon dioxide emitted during the craft beer brewing process, then cleans, stores and recycles it for reuse.
“The Recyclinator CO2 recovery system addresses a major missed opportunity in the craft beer market,” said Custodia. “Our goal is to provide small-scale breweries with a way to become more eco-friendly while reducing production costs.”
According to the company’s research, a 15,000-barrel craft brewing operation is spending about $70 on carbon dioxide in just one day, while nearly $130 worth escapes into the atmosphere as part of the fermentation process — the carbon footprint of about 14 cars.
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State Farm Issues $13.3 Million in Refunds
to Overcharged California Policy Holders
State Farm Insurance has issued refunds totaling $13,335,701 for overcharged premiums to 241,356 California consumers, Insurance Commissioner Dave Jones announced Thursday. He said the company is finally complying with his rate reduction order after losing twice in court.
The refunds with interest resulted from an order by Jones that State Farm reduce its homeowners’ and renters’ rates by seven percent overall. Jones issued the order, which went into effect on Dec. 8, 2016, after an extensive public hearing and found that State Farm’s rates were excessive.
Instead of complying, State Farm sued the commissioner and asked the court for a stay while State Farm challenges the order over the next year or years in court proceedings. The court denied State Farm’s request to stall reducing its rates, and ruled that the commissioner’s rate reduction order should go into effect immediately.
State Farm started complying with the commissioner’s rate reduction order after several court actions, including issuing refunds with interest to policyholders overcharged since December 8. As a result of the lawsuit and delay, approximately 250,000 California consumers were charged excessive rates from approximately Dec. 8, 2016 through approximately mid-February 2017, according to Jones. Overcharged State Farm policyholders should receive an average savings of $54.92 per policy in refunds of overcharged premiums with interest.
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Marine Corps, Navy Host Amphibious
Warfare Tech Demo at Camp Pendleton
ExecutiveGov
The U.S. Marine Corps and Navy hosted a 10-day exercise in April at Camp Pendleton for defense, commercial and academic organizations to showcase emerging technology platforms such as unmanned aerial, multi-utility tactical transport and autonomous assault amphibious vehicles.
The Defense Department said that its civilian employees, contractors and members of the Office of Naval Research and other research laboratories participated in the activity, called the Ship-to-Shore Maneuver Exploration and Experimentation Advanced Naval Technology Exercise 2017.
Participants demonstrated technologies in five amphibious operational areas including ship-to-shore maneuver, weapons fire support and effects, command and control, clearing assault lanes and information warfare.
“The large scope of this exercise allows the Navy and Marine Corps to make informed decisions about future generations of technology for use by the warfighter,” said David Walker, director of technology at the Office of Naval Research. “This pairing of sailors and Marines with scientists and technologists will help move innovation at a faster pace.”
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Mayor to Announce Partnership
to Support Immigrant Integration
Mayor Kevin Faulconer is to announce today a new partnership between the city of San Diego, the San Diego Regional Chamber of Commerce, the San Diego International Airport and New American Workforce to make citizenship services available at the worksite for city and airport employees and their families.
New American Workforce, a project of the National Immigration Forum, helps businesses assist their eligible immigrant employees with the naturalization process so that they become full participants in the workplace, community and economy. Speakers at a morning press conference are to discuss immigrants’ economic contributions to the region and workforce, and how this partnership will bolster local immigrant integration efforts.
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Earthquake Fault May Force Redesign
of Seaport Village Redevelopment
An earthquake fault has been discovered below Seaport Village, according to preliminary results from a geotechnical study, and that could force a redesign of the redevelopment plan for the 37-year-old specialty retail center. Reported by San Diego Union-Tribune.
