The PUMA/Cobra Golf deal – More

Although all the parties involved in the historic Cobra Golf deal are remaining quite tight-lipped publicly after the Fortune Brands press release this morning there is certainly a lot of internal action.

Both companies are likely working with their respective dealers to clarify exactly how this deal will play out.

We just received a copy of an email being sent out to some Acushnet (Cobra Golf) accounts to educate their staff and dealers on what the deal holds for them.

As provided:

“Our Acushnet relationship has given the Cobra brand the ability to develop a strong partner base, and to be a part of an outstanding support infrastructure, including the Acushnet Sales team. In this new structure, with the global support of the PUMA brand, we will accelerate growth of our business, and development of our unique brand, with singular focus on Cobra in the golf club category. Our intention is to aggressively pursue our growth strategy and to continue to increase market share with our premium golf retail partners.

With the support of PUMA as our main shareholder, Cobra Golf can explore the full potential of our brand while providing PUMA with increased visibility in the golf segment.

Pending regulatory approval, the acquisition of Cobra Golf by PUMA is expected to be finalized early in the second quarter of 2010. Until that time all business will continue to be conducted with Acushnet. After the close of this transaction a service agreement has been established so that Acushnet will continue to support many aspects of Cobra?s business during a defined transition period to insure our business with you continues without interruption. Based on this agreement your contact points for Cobra will continue to be your Acushnet Sales and Service Representatives through August 31, 2010. You can expect to be notified by Cobra & PUMA within the next 30 days with updates regarding the transition period, and to establish a direct account relationship for future purchases of Cobra products.

We greatly appreciate your support of the Cobra Brand which, thanks to you, has strong momentum going into the 2010 season. If you have any additional questions, please do not hesitate to contact us.”

Fortune Brands Agrees To Sell Cobra Golf to PUMA

The rumour mill had been grinding on this topic for some time and today Fortune Brands made it official with the release below.  With the move to take their Cobra Golf Tour van off the PGA Tour this season there has been much speculation as far as the future of the company in the hands of Fortune Brands.  The owners of iconic cosnumer brands such as Jim Beam and Moen, they are coming off two very tough financial years.  See their financials here.

We have a follow up request into the Senior Marketing Executive at PUMA Golf North America for any official statement and we will follow up as more details arrive.

Fortune Brands Agrees To Sell Cobra Golf to PUMA AG

Fortune Brands Agrees To Sell Cobra Golf to PUMA AG

DEERFIELD, Ill., Mar 10, 2010 (BUSINESS WIRE) — Fortune Brands, Inc.  today announced a definitive agreement for the sale of its Cobra golf brand to PUMA AG. The sale includes the Cobra brand, as well as related inventory, intellectual property and endorsement contracts.

“Divesting the Cobra brand will enable us to drive shareholder value by concentrating our golf investments behind Titleist and FootJoy, which represent our highest return growth opportunities in golf,” said Bruce Carbonari, chairman and chief executive officer of Fortune Brands. “With Titleist and FootJoy, we will continue to have the leading worldwide position in the attractive golf consumer products category, and we are very well positioned to drive growth as the market stabilizes in 2010 and recovers in the years ahead.”

Titleist is the #1 ball in golf and FootJoy is the #1 shoe and glove in golf. As the company’s flagship golf club brand, Titleist generates the majority of the company’s sales in the golf club category. In 2009, Titleist golf club sales grew in a global golf club market that declined at a mid-teens rate.

“With the sale of Cobra, we have the opportunity to devote all of our resources to the global growth of our industry-leading Titleist and FootJoy brands,” said Wally Uihlein, CEO of Acushnet Company, the golf business of Fortune Brands. “As we continue innovating, competing for market share in the U.S. and expanding internationally, we believe Titleist and FootJoy will be the industry’s most powerful platforms for profitable long-term growth. At the same time, Cobra is a strong brand with a heritage of innovation, and we wish the quality associates guiding the brand future success.”

Acushnet will provide transition services to PUMA on behalf of Cobra — including production, distribution, field sales and customer service — for an agreed-upon period of time beyond closing of the sale. All Acushnet employees dedicated to the Cobra brand are expected to become employees of PUMA upon completion of the transaction.

Fortune Brands expects the sale to be approximately two cents dilutive to 2010 earnings per share before a one-time gain on sale of approximately five cents per share. Financial terms of the pending transaction were not immediately disclosed.

The sale is subject to customary closing conditions and regulatory approvals. The companies anticipate the transaction will close early in the second quarter.

Full Speed Ahead At Doral

Will Mickelson defend the CA Championship?

Will Mickelson defend the CA Championship?

The quality of the field won’t be in question this week at the TPC Blue Monster at Doral (but the new name still seems to trip as it leaves my tongue).  Save for Tiger Woods (personal issues) and Ryo Ishikawa (high school graduation, really), 68 of the best players in the world are on hand in Miami for the World Golf Championships – CA Championships.

What could be an enigma is just who is the frontrunner.

Many will look to defending champion Phil Mickelson but after repeatedly being chosen as the marked favorite each week that he has played this year, he has done nothing but disappoint.

And no offense to Alistair Presnell; I am sure he earned his spot among the world elite but even a keener like me had to scramble to the event media guide to discover even what country he hailed from.

So where does that leave us with the other 66?  Thoroughly confused I say.  This tournament might just fall into the hands of anybody in the field.   Heck it could be Presnell adding the title to his 2010 portfolio that includes the Celebrations Victorian PGA Championship.

Yes, I could point to Camilo Villegas with a win, a tie for third, and a tie for 8th in his only three Tour appearances this season but he might be an easy target.

For my money I am going to stay focused on Oliver Wilson.  The Augusta State product appears to be playing solidly with top-20 form at The Honda Classic and a 3 & 1 record at the Match Play.  He also finished tie for 5th here last year, with a smooth 66 on Sunday.

The fact is whoever wants to win the championship and the (USD) $1.53 million that goes with it, will have to go low.  With no cut the there is seemingly one gear necessary at Doral – full speed ahead. Reference Mickelson’s winning tally of 19 under par last year.

This may be the (TPC) Blue Monster but unless a hurricane blows, its teeth should be rather dull.  The normal winds will try and protect the course but flattish putting surfaces and soft conditions expected due to rain will make this a shooting match of the highest accord.  It sets up a birdie-fest with plenty of lead changes a distinct possibility.

One place you might see that is on the 16th hole. The short par four (372 yards) allows players to cut the corner to get close to the putting surface.  According to ShotLink, 48 percent of the field actually went for the green off the tee in 2009, making it a great spectator hole.  Ultimately Soren Hansen was the only player to successfully reach the surface.  He did so in the final round and went on to make birdie.

There are still more than a few chances for disaster over the 7,334 yards (full course length – could be set up shorter) , including 11 water hazards, that makes up Doral so be sure to throw a few votes the way of a couple steady guys who know how to use the flat stick.  Steve Stricker is an obvious one but also look to see Jim Furyk break out of his recent funk.  He has proven in the past the he knows how to make birdies at Doral and the winner will need them in bunches.

Notes:

-The Kodak Challenge hole this week is the 8th, a mid-length par 5 of 560 yards where eagles are a distinct possibility. Three of them were made last year.  See www.kodakchallenge.com to keep up on scoring.

- The course record is held by Stephen Ames of Canada at 61.

-The most difficult hole is still the 18th.  The 467-yard par four closer usually plays into the wind and gave up only 11 birdies to the field in 2009

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