Gene Yoon , Chairman & CEO of Fila Korea Ltd. / GLBH Holdings S.a.r.l.

Fila extends local license for 30 yrs; to double stores by ’15 SEP 23

Gene Yoon, Chairman & CEO of FILA Global

Mumbai: Leading sportswear maker Fila, which Sunday extended its license agreement here with Cravatex for another 30 years, said it plans to more than double its exclusive stores to 100 in the next two years and focus more on apparel.

Fila has been present here for the past three years and operates under a license agreement.

The originally Italian and currently Korean brand Fila has 5 percent market share in the Rs 2,000-crore sportswear market and is eyeing to double its market share to 9-10 percent by 2015, the company said.

“We are growing at 25-30 percent annually, and we plan to add 60 more stores by 2014 to take the own-store tally to 100. And with this we will be focusing on more apparel sales here,” Fila global chairman and chief executive officer Gene Yoon told PTI here.

On extending the license agreement with the city-based Cravatex for such a long time, Yoon said, “I thought it is time to give more space to invest in the business more aggressively by giving a long-term license agreement to our franchise partner here. We have renewed it for 30 years so that they can comfortably invest more in the business”.

On store expansion, Cravatex chairman Rajesh Batra said the focus will be on the own-store format.

“So far we have been present largely in wholesale and shop-in-shop formats and retail stores, so the next step is open stores and push apparel sales through exclusive stores. Initially, we were focusing on footwear. Sunday we are 60-65 percent a footwear company. We want to make that equal as we go along,” Batra said.

Fila had clocked retail revenue of Rs 120 crore in 2011-12 in the country while its global sales stood at USD 1.2 billion (around Rs 6,500 crore at the current exchange rate), but Yoon said the market provides them a huge opportunity.

“There is big potential here. The two big potential countries in Asia are China and India,” Yoon said, adding the company has individual agreements with partners to spend 4-5 percent of their revenues on marketing activities.

Without naming Reebok India, he said the issues at that company offer him an opportunity to grow faster here.

“We have relatively small share of the market at this moment. We can only expect to grow and increase the business even though the market is declining for the big guys. There is a problem with a big global company here, which presents us opportunity over here,” Yoon said.

The Rs 2,000-crore branded sportswear segment is growing at 12-15 percent.

Asked if Fila plans to grow inorganically here, Yoon said a recent acquisition in the US does not permit it to acquire new firms at present.

“Not at this moment. According to the agreement for Acushnet, I am not supposed to buy any new company till I make a successful exit, which is in 2016, when the IPO for Acushnet comes in the Hong Kong market,” he said.

Fila Korea that owns the Fila brand name, and Mirae Private Equity, which bought the Fortune Brand Inc’s Acushnet that makes the Titleist golf balls, clubs and other equipment for USD 1.23 billion in May last year.

The Italian owner’s of Fila had sold the brand to hedge fund Cerberus Capital Management in 2003, except Fila Korea. Fila Korea later bought the parent brand in 2007.

Yoon added that newly-acquired company has shown good growth which makes it a profitable buy.

“When we acquired the company, the earning before tax was USD 105 million. This year it was USD 145 million. We are very happy with the acquisition of Acushnet. I have to double the earnings before tax before by 2015. Which means USD 215 million, but I am expecting we may even hit USD 265 million. So it is a good buy,” he said.

Fila India, which in July roped in cricketer Virender Sehwag as its first brand ambassador with a contract for three years, is keenly watching the football space due to the growing interest for the sport.

“Football is becoming very popular over here. We tied up with Mohun Bagan to sponsor their kits two weeks ago,” Yoon added.

PTI

FILA Global chief Gene Yoon wins Ernst & Young award

FILA Global chairman Gene Yoon (third from left) poses with other winners at a ceremony for the sixth Ernst & Young Entrepreneur of the Year Award in Seoul on Thursday. (Ernst & Young Hanyoung)

FILA Korea Ltd. and FILA Global chairman and CEO Gene Yoon won the sixth Ernst & Young Entrepreneur of the Year Award, or EOY, organizers said on Friday.

The award is created to pioneer outstanding leaders of business whose strength and leadership inspire world.

Out of six EOY awardees, Yoon won this year’s EOY Master’s Award in recognition of his excellence in mergers and acquisitions he showed in merging the global sports brand FILA, Ernst & Young Hanyoung said.

In 2011, Yoon also succeeded in acquiring former U.S. golf equipment and apparel firm, Titleist.

First created by the U.S.-based accounting firm in 1986, the Ernst & Young Entrepreneur of the Year has expanded internationally since 1993, spanning more than 140 cities in 50 countries.

By Chung Joo-won (joowonc@heraldcorp.com)

Fila Chairman Gene Yoon Named Honorary Citizen of Biella, Italy: Yoon Recognized for His Contributions to the Fila Brand

Fila announced today that the company’s Chairman, Gene Yoon, was recognized as an honorary citizen of Biella, Italy, the alpine town where the Fila brand was born. Originally founded by the Fila brothers nearly one hundred years ago, Fila helped Biella to become known throughout the world for the manufacturing of rich textiles and superior craftsmanship. In recognition of Mr. Yoon’s contribution to the Fila brand over the last two decades, Biella’s Mayor, Donato Gentile, presented Yoon with the honorary citizenship during a ceremony this morning attended by prominent community members, government officials and special guests at City Hall.

“It is an honor to be recognized by the people of Biella, Italy,” said Gene Yoon, Chairman of Fila. “As we near the 100 year anniversary of the Fila brothers’ founding of the company, the contributions of the people of Biella throughout the years speak volumes to what the brand has been able to accomplish worldwide. On behalf of all of us who work with the brand today, I can say that not a day goes by without us all reaching back to the heritage of Fila here in Biella for inspiration.”

As we near the 100 year anniversary of the Fila brothers’ founding of the
company, the contributions of the people of Biella throughout the years speak
volumes to what the brand has been able to accomplish worldwide. On behalf of
all of us who work with the brand today, I can say that not a day goes by
without us all reaching back to the heritage of Fila here in Biella for
inspiration

During his visit to Biella to receive the award and to celebrate this momentous occasion, Mr. Yoon will begin discussions with Mayor Gentile about the potential for opening a museum in Biella to tell the story of the Fila brand and the region’s rich textile history. He hopes to increase tourism to the region and to attract those interested in the city’s storied history in the apparel industry.

About Fila: Established in Italy in 1911, Fila is a leading manufacturer of sport and leisure footwear and apparel distributed worldwide. The internationally respected company, having gained world class recognition in tennis apparel, has developed brand recognition by marketing products with a high design and style content that are endorsed by professional artists and athletes from around the world.

http://gene-yoon.com/2010/04/14/fila-chairman-gene-yoon-named-honorary-citizen-of-biella-italy-yoon-recognized-for-his-contributions-to-the-fila-brand/

Fila CEO Gene Yoon: Korea branch is the standard

Fila will present its Korean branch’s business model as a global standard for Fila operations around the world, said Steve Wynne, 51, president and chief executive of Fila Sports S.p.A., who visited Korea yesterday.
Since it was established in 1991, Fila Korea has grown more than 30 percent every year on average, leading the growth of the entire group, he said.
Mr. Wynne is credited with boosting the revenues of Adidas America as chief executive from $400 million in 1996 to $1.7 billion in 2000. He joined Fila in February.
By locally producing all of its products, Fila Korea can quickly adapt to changes in fashion trends and decrease inventory stock, he said.
Fila Group was taken over by SBI Holdings last June.
At that time, Yoon Yoon-soo, 58, president of Fila Korea, took part in the takeover and assumed the position of the president of Fila Asia as well.
Mr. Wynne said that Fila Group successfully completed a thorough restructuring last year.
In Europe, the company laid off 30 percent of its total staff, or about 550 workers. In the United States, the company shed 10 percent of its total staff, or 100 workers, Mr. Wynne said.
He said that Fila will focus on developing high added value products, such as golf-related products, and will aggressively localize.
Compared to Nike or Adidas, Fila is still a small company, but that means its organization is flexible and effective enough to fast adapt to the local culture, he said.
Mr. Yoon said Fila Korea plans to make a large investment in the local business this year.
For the first time in 14 years, Fila Korea’s business shrank nine percent last year.
“Due to the sluggish economy, customers tend to prefer low-priced products,” Mr. Yoon said. “So we will develop products that meet such demands.”
Fila Korea currently produces all of its products in Korea, but Mr. Yoon said the firm will think about shifting production to China as the costs of production increase.

by Park Hye-min

http://gene-yoon.com/2004/05/31/fila-ceo-gene-yoon-korea-branch-is-the-standard/

Bogey player’s albatross shot

http://www.gene-yoon.org/2011/05/22/bogey-players-albatross-shot/

Fila CEO buying global golf product makers Titleist, FootJoy

By Oh Young-jin

What does Gene Yoon, chairman and CEO of sportswear maker, Fila have in mind?

One thing that is certain is that Yoon, an amateur golfer with a handicap of 18 for an 18-hole round, has as good as hit an albatross by snaring one of the biggest deals in the global golf industry.

It is hard to catch a glimpse into the business mind of one of the most celebrated self-made businessmen in Korea but, by some indications, he has set his mind on making his sportswear making firm into a golf conglomerate such as Tailor-Made or Nike Golf.
Last week, Yoon made it into headlines, as he, with the help of Mirae Asset, took over Acushnet, the U.S. golf firm that has Titelist golf ball maker and FootJoy golf shoemaker, at a cost of $1.2 billion.

“I want to create big synergy between Fila, and Titelist and FootJoy,” Yoon told The Korea Times during a phone interview Sunday. “I believe that these firms, the world leading firms in their given areas of business, will encourage the development of the golf-related industry in Korea where there is no infrastructure to name.”

In the process, Yoon beat out Adidas, which owns Tailor-Made, and U.S. golf giant Callaway that bid in a consortium with the world’s largest private equity, Blackstone.”

“We needed this deal more than the others,” Yoon said. The deal immediately puts Fila on the map of golf-related item makers, setting the stage for its foray into China, the biggest emerging market where golf is fast gaining popularity.

He said, for now, that he would make no new purchases anytime soon.

Showing his commitment to his latest buys, the 66-year-old Korean industrialist said that their current management will be kept for a considerable period of time. “Any change will be made at a time when his firms achieve synergy to the hilt.”

The history of Yoon and Mirae goes back some time when Mirae helped him buy Fila, the Italian firm, in 2007. Two years prior, Yoon bought Fila Korea, the Korean branch, from its Italian owner.

“I have not seen Mirae Chairman Park Hyun-joo,” he said without clarifying whether he meant he had not seen him while the deal was being made or he doesn’t know Park.

When he answered the call, Yoon said that he was playing a round of golf.

However much he loves the sport, he said that he is an average player, his handicaps being one over par or 18 for a 72 par 18-hole round.

“I love to play but I can’t because of my tight business schedule,” he said, adding that he plays about three times a month.

Read more : http://koreatimes.co.kr/www/news/biz/2011/05/602_87463.html

Bogey player’s albatross shot

http://gene-yoon.com/2011/05/22/bogey-players-albatross-shot/

Fila CEO buying global golf product makers Titleist, FootJoy

By Oh Young-jin

What does Gene Yoon, chairman and CEO of sportswear maker, Fila have in mind?

One thing that is certain is that Yoon, an amateur golfer with a handicap of 18 for an 18-hole round, has as good as hit an albatross by snaring one of the biggest deals in the global golf industry.

It is hard to catch a glimpse into the business mind of one of the most celebrated self-made businessmen in Korea but, by some indications, he has set his mind on making his sportswear making firm into a golf conglomerate such as Tailor-Made or Nike Golf.
Last week, Yoon made it into headlines, as he, with the help of Mirae Asset, took over Acushnet, the U.S. golf firm that has Titelist golf ball maker and FootJoy golf shoemaker, at a cost of $1.2 billion.

“I want to create big synergy between Fila, and Titelist and FootJoy,” Yoon told The Korea Times during a phone interview Sunday. “I believe that these firms, the world leading firms in their given areas of business, will encourage the development of the golf-related industry in Korea where there is no infrastructure to name.”

In the process, Yoon beat out Adidas, which owns Tailor-Made, and U.S. golf giant Callaway that bid in a consortium with the world’s largest private equity, Blackstone.”

“We needed this deal more than the others,” Yoon said. The deal immediately puts Fila on the map of golf-related item makers, setting the stage for its foray into China, the biggest emerging market where golf is fast gaining popularity.

He said, for now, that he would make no new purchases anytime soon.

Showing his commitment to his latest buys, the 66-year-old Korean industrialist said that their current management will be kept for a considerable period of time. “Any change will be made at a time when his firms achieve synergy to the hilt.”

The history of Yoon and Mirae goes back some time when Mirae helped him buy Fila, the Italian firm, in 2007. Two years prior, Yoon bought Fila Korea, the Korean branch, from its Italian owner.

“I have not seen Mirae Chairman Park Hyun-joo,” he said without clarifying whether he meant he had not seen him while the deal was being made or he doesn’t know Park.

When he answered the call, Yoon said that he was playing a round of golf.

However much he loves the sport, he said that he is an average player, his handicaps being one over par or 18 for a 72 par 18-hole round.

“I love to play but I can’t because of my tight business schedule,” he said, adding that he plays about three times a month.

Read more : http://koreatimes.co.kr/www/news/biz/2011/05/602_87463.html

Entrepreneurship = risk taking

http://gene-yoon.com/2012/11/30/entrepreneurship-risk-taking/

“Entrepreneurship,” arguably the trendiest word of our time when people have lost their faith in financial juggernauts and conglomerates, became so overused that it has no clear definition. For Gene Yoon, the chairman of sportswear brand Global Fila and golf equipment maker Acushnet, the term is about risk taking.

“Challenging the unknown world is terrifying, and not anyone can do it. But you must take unknown risks in order to attain high returns. Entrepreneurs are no cowards,” said Yoon, who is also known as his Korean name Yoon-soo.

Grand prize

Business Focus met Yoon at a dimly lit private room in a cafe at Hotel Shilla. The luxury hotel owned by the Samsung family was hosting a red carpet event that day. Men came in tuxes and ladies in floor-length evening dresses, creating a rare scene to be seen in Seoul.

The hero of that night was Yoon, who was going to win the “Ernst & Young Entrepreneur of the Year” award. The global audit and consulting firm would award five entrepreneurs of Korea, and the top honor — the master prize — was Yoon’s. The black bow tie looked good on him.

Gene Yoon, the chairman of Global Fila and Acushnet, delivers an acceptance speech after winning the master’s prize at the 2012 Ernst & Young Entrepreneur of the Year Korea award in Hotel Shilla, central Seoul, Nov. 22. / Courtesy of Ernst & Young Korea

In his inner pocket, he prepared an acceptance speech. He was going to talk about why Korea needs more entrepreneurs. He hopes the country does better in encouraging entrepreneurs instead of killing the “animal spirit” of businesspeople.

“The weakness of capitalism is that the wealthy makes a lot of money and the poor don’t. There should be corrections made on this cycle,” Yoon said.

“When society fosters entrepreneurs who take risks, do their best, succeed and achieve high returns, there will naturally be a positive circulation of wealth. People will also have the hope that a guy like myself can make it.”

Risk taking

In May 2011, Fila and Mirae Asset Private Equity Fund (PEF) bought Acushnet from Fortune Brands for $1.23 billion. Fila was going to manage the company, and Mirae Asset secured investment from National Pension Service, the world’s fifth largest pension fund, and the state-owned Korea Development Bank.

Koreans, many of whom are golf enthusiasts, couldn’t believe that high-end golf brand Titleist and esteemed shoemaker FootJoy were now controlled by the Korean capital. The acquisition has been celebrated as the best deal done by Korean companies.

Behind the glamour, however, the acquisition remains a risky bet to Yoon. When Fila and Mirae Asset bought Acushnet, Fila invested only $100 million out of the $1.23 billion paid to Fortune Brands.

The rest came from financial investors who required Acushnet to be listed on the stock market by 2016. In short, Yoon’s job is to manage the company well and boost its value and help investors reap capital gains and exit.

His more imminent goal is to double Acushnet’s earnings before interest and taxes by the end of 2015.

“If I fail to achieve that, I will be deprived of all my assets including shares in Fila,” Yoon said, indicating that they are held as securities to the loans.

In the meantime, Fila has been given the right to buy back shares from the investors and ultimately the opportunity to become Acushnet’s major shareholder.

Yoon said that he will be able to talk about the creation of a synergy effect between Fila and Acushnet only when the former fully takes over the latter. Investors do not want the businesses of Fila and Acushnet to be combined yet, he added. For instance, Acushnet will launch the clothing line of Titleist next year in Korea, Japan and China while Fila continues to produce its golf apparels.

“That’s the hidden meaning behind why I carry two business cards — one for Fila and the other for Acushnet — although I would very much like to save on paper,” Yoon said with a laugh.

The chairman, in fact, had taken similar risks with the buy-out of the full stake in Fila Korea in 2005 and Fila Korea’s acquisition of the global rights to the Fila brand in 2007.

Back in 2005, Yoon led the “management buy-out” of Fila Korea, the deal that turned the company from a subsidiary of a foreign company into a genuinely domestic firm.

He formed a consortium with executives and employees of Fila Korea and domestic investors and banks, which bought the full stake from Fila’s New York-based holding company, Sports Brands International.

Two years later, he tried an even bolder deal described as “the tail conquering the head.” In order to acquire Fila Luxembourg, the entity that owned all the rights to the Fila brand, Yoon drew several financial investors including Samsung Securities that bought each Fila Korea share at 20,000 won. Yoon pledged to take the company public, and did so in October 2010 with an initial public offering (IPO) price of 35,000 won.

Fila Korea stocks has been moving in the vicinity of 60,000 won while the shares of most companies that went public in 2010 — notably, those of Samsung Life Insurance — are underperforming their IPO prices.

The biggest benefit of the acquisitions so far would be the immense boost in Fila’s brand value. Fila, despite its Italian heritage, now represents Korea’s sportswear, and was chosen as the official provider of uniforms for the Korean team during the London Olympics this year.

The brand also sponsors the country’s two hottest athletes — swimmer Park Tae-hwan and gymnast Sohn Yeon-jae — and have them as models in its advertisements.

“Sponsoring Park, to be honest, is more of a business decision. The sponsorship for Sohn is different for its long-term nature. We’ve been supporting her since she was very young,” Yoon said.

When asked if he has any plans to get new models for golf equipment brands, he said that Acushnet already supports hundreds of golfers including Jason Dufner, Kyle Stanley and Webb Simpson. He did feel that Rory McIlroy’s departure from Titleist for Nike was a loss.

“Rory McIlroy will be with us until the end of December. He was given much more money (by Nike), and if we cannot match it, we should let him go forward. We cannot stop him from better opportunities,” Yoon said.

M&A for expansion of economic territory

Yoon is now known as Korea’s most experienced in handling mergers and acquisitions (M&A) at global scale. He said that although Korea has developed much, fostering a truly global company still remains a challenge and acquiring one instead may be a more efficient path.

As the global economic crisis still lingers, fine companies are being offered for sale at bargain in the global M&A markets and Yoon urged Korea to expand the country’s “economic territory” by acquiring them. He forecasts that Koreans would be able to have such opportunities for shorter than the next five years because the wealthier China is expected to dominate the markets soon.

Yoon admitted that he is interested in three or four companies offered for sale, but his hands are tied. When Fila acquired Acushnet, the company pledged to financial investors that it would not acquire another company until the missions is accomplished so that both Fila and Acushnet remain financially healthy.

When asked which companies he is keen on, he said, “I shouldn’t mention their names because it might affect the deals.”

In a way, the ban on additional M&As was another risk Yoon had to take for purchasing Acushnet. Gone are the opportunities for him to attain good deals when too little time is left.

Yoon said that the acquisition of a Korean company by a Korean company is relatively an easy job, but that of a foreign company is not. The latter requires a staff who are fluent in English and have experience in managing global companies, but Yoon said there aren’t many of them in Korea.

He often boasts his fluency in English, the language he learned while serving in the military at the U.S. base and mastered while travelling for businesses. And with no business degrees, he gained skills in M&As in a hard way through experiences.

“Business schools do not teach you innovative strategies. Speaking of case studies that are popular teaching methods in MBA programs, the power of a strategy is completely gone once it is open to the public. The same strategy doesn’t work twice. You cannot make money with the same method. The really working strategy comes from your experience,” he said.

Yoon divided a typical M&A into four stages: negotiating, raising funds for the deal, managing the company and rewarding investors, usually through an IPO.

The most important stage is the third one — managing the company and boosting its value, which, he said, needs a talented staff the most.

“Korean companies aren’t actively buying global firms because they aren’t confident that they can successfully manage the companies,” Yoon said.

“There are only a few who can, and that’s why I make money. I am a patriot. I am helping Korea to expand its economic sovereignty.”

Learn from failures

When he gives speeches and interviews, he always emphasizes the importance of failures.

Dubbed “a legend of salaried employees,” Yoon is one of few Koreans who started as an employee of someone else and now leads a large corporation. He is a late bloomer who had gone through a series of devastating failures. Surprisingly, he said applying to the medical school of Seoul National University three times but never getting admitted has been the biggest letdown of his life.

Yoon was born in a village in Hwaseong, Gyeonggi Province, in 1945, the year of Korea’s independence from Japan. His mother died of typhoid 100 days after he was born, and he was raised by his aunt who was abandoned by her husband. Yoon’s father died of lung cancer when Yoon was a junior in high school, so he was deeply determined to study medicine at the prestigious public university in order to become an expert of the nature’s most feared killer.

“My dad’s only wish was to live until I got married. When he passed away without seeing me marry, I was tremendously shocked,” Yoon recalled.

After the first two failed attempts, he briefly studied at the dental school at Seoul National University but quit because he did not see the point of becoming a dentist. He tried one more time, but ended up studying political science and diplomacy at the Hankuk University of Foreign Studies. By the time he graduated from college, he was 28 (30 in Korean age).

“Failing three times dealt a great psychological damage to me, but in the long run, it made me humble. I am still sad that I couldn’t become a doctor, so I am extra humble in front of doctors,” Yoon said.

The chairman said that the biggest weakness of those who never fail in their lives is hubris, adding that Guan Yu, a general from Chinese epic Romance of the Three Kingdoms, was killed because of his arrogance.

“Humble people are the ones you should be afraid of. You cannot buy failures and humility with money. Failures also teach you the strategies of how not to fail in the next project. Once you have failed, you struggle not to make the same mistake again,” Yoon said.

kimdaye@koreatimes.co.kr,

Acushnet sold to Fila Korea, private equity firm

After nearly six months of speculation, Fortune Brands has signed an agreement to sell its Acushnet business, comprised of the Titleist, FootJoy and Pinnacle brands, to Fila Korea Ltd. and Mirae Asset Private Equity, the largest private equity firm in Korea. The sale remains subject to closing conditions, including the usual regulatory approvals, and is expected to close this summer. The price, according to a source with knowledge of the situation, is $1.225 billion.

It is expected that after the acquisition, Acushnet will remain as a standalone company with its worldwide headquarters remaining in Fairhaven, Mass. The current management team, including chairman and CEO Wally Uihlein, will remain in place.

“The Fila Korea and Mirae group understands and appreciates our golf industry leadership, passionate associates, and unique and enduring culture,” said Uihlein. “Together, with our new owners, our team is looking forward to strengthening and building upon the global success of the Titleist and FootJoy brands.”

Fila Korea has more than 500 total points of distribution including 300 franchise stores and ranks as one of the top sportswear brands in Korea, while Mirae listed more than $133 billion in assets in 2008.

“The acquisition of Acushnet transforms our platform with a stable of premier world class brands,” said Gene Yoon, Chairman and Chief Executive Officer, Fila Korea, Ltd. “We are equally excited to embrace Acushnet’s exceptional management team led by Wally Uihlein. With our extensive knowledge and reach in Asia, we believe that the Acushnet brands have incredible new opportunities for growth in the emerging markets in Asia.”

–E. Michael Johnson

Follow on Twitter @EMichaelGW

Read More   http://www.golfdigest.com/golf-equipment/blogs/hotlist365/2011/05/acushnet-sold-to-fila-korea-pr.html#ixzz2QXLz2cuv

Titleist golf brand spun off by Fortune to Fila Korea

Fortune Brands has sold its golf business, including the Titleist equipment brand, to Korean investors led by Fila Korea, for $1.2bn (£740m).

The deal is part of Fortune’s strategy to focus purely on its drinks business, led by its Jim Beam whisky brand.

The price for its Acushnet golf unit, which made $80m operating income last year, is higher than had been expected.

Fila Korea, which bought the eponymous Italian sportswear brand in 2007, plans rapid growth for the golf line in Asia.

“With our extensive knowledge and reach in Asia, we believe that the Acushnet brands have incredible new opportunity for growth in the emerging markets in Asia,” said Gene Yoon, the firm’s chief executive.

Mirae Asset Private Equity – Korea’s largest private equity fund – were also involved in the acquisition.

The Koreans beat a rival bid said to have been mounted by private equity firm Blackstone and Callaway Golf.

Premium spirits

Illinois-based Fortune Brands announced last year that it would spin off its gold and home security businesses, and focus purely on drinks, in response to pressure from a key shareholder, William Ackmann.

Acushnet made revenues of $1.2bn in 2010 – more than half of it in the US – compared with the $2.7bn made by Fortune’s alcoholic beverages line.

Its Jim Beam business is the fourth largest premium spirits business in the world.

“This transaction is a very important milestone as we execute our proposed plan to separate our three strong businesses for the purpose of maximising long-term value for out shareholders,” said Fortune boss Bruce Carbonari.

The firm will now focus on separating out its home and security business – which includes Master Locks, Simonton windows and Masterbrand cabinets – in preparation for its sale.

http://www.gene-yoon.org/2011/05/20/titleist-golf-brand-spun-off-by-fortune-to-fila-korea/

Acushnet to be sold to Korean

As of Monday, May 23, 2011

Acushnet Co., owners of the Titleist and FootJoy brands, has reached an agreement to be acquired by an Asian group led by Fila Korea Ltd. and Mirae Asset Private Equity, the largest private equity firm in Korea.

The May 20 announcement of the pending sale ends months of intense industry speculation about the future of Acushnet, whose parent Fortune Brands decided in December to split its company, including possibly selling its golf division. Acushnet did not release terms of the sale, but the Associated Press reported Fortune anticipates reaping $1.1 billion after taxes and expenses following the deal’s expected close this summer.

Though premature to assess the full impact of the ownership change, it clarifies key issues for Acushnet: The company will operate as a standalone entity and remain based in Fairhaven, Mass. Wally Uihlein and Acushnet’s current management team, who have built Titleist and FootJoy into dominant product category leaders, will remain intact.

“The Fila Korea and Mirae group understands and appreciates our golf industry leadership, passionate associates, and unique and enduring culture,” said Wally Uihlein, Acushnet’s chairman and CEO. “Together, with our new owners, our team is looking forward to strengthening and building upon the global success of the Titleist and FootJoy brands.”

The acquisition also underscores not only Asia-Pacific’s interest in golf, but its growing influence in shaping the sport and its industry. Ownership of Acushnet – one of the largest golf equipment companies in the world with annual sales exceeding $1.2 billion in 2010 – reflects the region’s clout and holds the promise of boosting Acushnet’s sales overseas.

“The fact that Asia Pacific represents over 30 percent of the world’s total golf equipment spending, and that South Korean golfers are among the most passionate and organized in the game, is testament to the significant investment in the Acushnet Company by the Fila Korea and Mirae group,” Uihlein said.

Fila Korea is the entity that owns the Fila brand globally. Established in Italy in 1911, Fila is a leading sport and leisure footwear and apparel brand. The acquisition group led by Fila Korea and Mirae, also includes the National Pension Service of Korea, the fourth-largest pension fund in the world, and Korea Development Bank, Korea’s largest government-owned bank.

“With our extensive knowledge and reach in Asia, we believe that the Acushnet brands have incredible new opportunities for growth in the emerging markets in Asia,” said Gene Yoon, Fila Korea’s chairman and CEO.

Said JH Ryu, chief executive of Mirae Asset Private Equity: “We will fully support the company (Acushnet) to remain focused on its core golf expertise and continue driving the growth of the industry.”

http://www.gene-yoon.org/2011/05/23/acushnet-to-be-sold-to-korean/

Acushnet plans to accelerate growth in Asia

Acushnet plans to accelerate growth in Asia

says Acushnet’s new chairman is known as a rainmaker in South Korea, but don’t be surprised if he gains a similar reputation in the U.S.

By Gene Yasuda

As of Wednesday, September 14, 2011

Back home in South Korea, Gene Yoon is widely regarded as a rainmaker.

After all, he engineered one of the most successful initial public offerings in the history of the Korean Stock Exchange when he took Fila Korea public in 2010.

Don’t be surprised if Yoon – who recently led a consortium of Korean investors to acquire Acushnet Co., which owns Titleist and FootJoy – orchestrates an encore in golf.

At a media event held Aug. 31 near Acushnet’s headquarters in Fairhaven, Mass., Yoon provided a glimpse of his ambitions: To take Acushnet public, perhaps as soon as four years.

“We’re going to try to create the kind of opportunity (in which) all the investors can make the big money they’ve never seen before,” said Yoon, Acushnet’s new chairman. Sensing that he might have said too much, Yoon added with a touch of humor: “By the law, I suppose I (should) not say that specifically.”

Though he can’t guarantee such riches, Yoon made clear the new ownership group’s plans to fulfill its bullish intentions. The investors, led by Fila Korea Ltd. and Mirae Asset Private Equity, acquired Acushnet for more than $1 billion from Fortune Brands, which had owned the golf entity for 35 years since purchasing it for $55 million in 1976.

“We expect the transition to be seamless to the thousands of trade partners and the millions of serious golfers around the world,” Yoon said. “There is a significant potential in Asia to solidify our position as golf’s global premier brand, particularly in China, Korea and Japan. Mirae Asset and Fila Korea have great reach in this market, and we plan to help Acushnet facilitate growth at a rapid rate.”

Though Acushnet recently opened a golf ball plant in Thailand, Yoon insisted that Titleist’s U.S. manufacturing – and employment – would continue.

“The reason why we built that ball plant in Thailand is because we are going to try to put production closer to the market,” he said. “We try to save the cost of transportation. That’s the only reason. I think mostly the plant that we have in the U.S. will cover the European market as well as the U.S. market. If you still have some worry that Acushnet may go away from this area – that’s 100 percent wrong. Please delete that kind of thinking.”

The new owners’ intensified push into Asia validates Acushnet’s forecast that the Asia Pacific market will represent “40 percent of golf’s GDP” by 2015, according to Wally Uihlein, who will remain as the company’s CEO.

“Fortune Brands was a great partner, but I would add, though, that at the end of the day, they didn’t make as many trips to Asia Pacific as I would have liked for them to see why we needed to invest in those markets,” Uihlein said. “We certainly don’t have that concern when the sources and origins of the investor community is based in Asia Pacific. Because of that, we’ve actually accelerated our expectations in Asia Pacific for the next couple of years, and with its growth, we expect to grow proportionately in size compared to where we think that market will be.”

http://www.gene-yoon.org/2011/09/14/acushnet-plans-to-accelerate-growth-in-asia/