FILA Korea completes acquisition of Acushnet

By Lee Hyo-sik

Yoon Yoon-soo, FILA Korea chairman

FILA Korea has become the majority stakeholder of Acushnet Holdings, which owns popular golf brands such as Titleist and FootJoy, five years after it first began managing the Massachusetts-based company.

FILA said Wednesday that Acushnet recently became its affiliate after it acquired an additional 20 percent stake from Mirae Asset Private Equity and other financial investors, pushing up its holdings to 53.1 percent.

By using the maker of the world’s most popular golf balls as a springboard, the company plans to diversify its portfolio and emerge as a global sports brand, such as Nike and adidas.

In 2011, FILA acquired Acushnet with Mirae Asset and other financial firms for 1.3 trillion won ($1.1 billion). At the time, FILA had a 12.5 percent stake. But over the past five years, it increased its holdings to 33.1 percent. When Acushnet went public in October, FILA bought 20 percent more from its business partners to maintain managerial control.

Mirae Asset and other financial firms still have a 16.4 percent stake, with the remaining 30.5 percent being traded on the New York Stock Exchange.

In 2015, FILA Korea, which took over its mother firm in Italy in 2007, earned 815.7 billion won in sales. Its sales more than doubled to 2.5 trillion won when Acushnet’s 1.7 trillion won sales were included.

“FILA will continue to support its sustainable growth, and Acushnet will maintain its premium marketing for Titleist and other golf brands,” FILA Korea Chairman Yoon Yoon-soo said. “FILA will launch new business models next year to diversify its product portfolios. We will also invest aggressively to become one of the world’s premium sports brands.”

In 2017, FILA will launch a globally-uniform marketing campaign, “One World One FILA,” to establish a universal brand image and identity across the world. So far, each regional office has been running localized marketing activities.

The company also plans to set up more production lines in China to manufacture shoes, apparel and other products.

“We have so far dealt directly with consumers. But to secure a more stable cash flow, we will expand our reach to corporate clients who need reliable manufacturers who can produce high-quality sportswear and gear at lower prices,” a FILA Korea official said.