Adams Golf Inc. (ADGF), the golf club seller that today said it hired Morgan Stanley to review strategic alternatives, may consider among its options a sale or starting a dividend, Chief Executive Officer Chip Brewer said.
Potential suitors for Plano, Texas-based Adams include Callaway Golf Co. (ELY), Nike Inc. and Adidas AG (ADS), said a person familiar with the matter, who declined to be identified because the discussions are private.
Adams Golf, founded by Chairman Barney H. Adams in 1987, boosted sales 14 percent to $97.4 million in the 12 months ended Sept. 30. After posting a net loss of $12.2 million in 2009, the company has made money in six of the past seven quarters. The shares, which gained 37 percent last year, rose 4.3 percent after the close to $6.58 at 6:32 p.m. in New York.
“We are going to go through with a process that best helps shareholder value,” Brewer said today in a telephone interview.
The review may not result in a transaction, Adams said today in a statement.
Pen Pendleton, a spokesman for Morgan Stanley, declined to comment. Tim Buckman, a spokesman for Callaway, declined to comment, and Mary Remuzzi, a spokeswoman for Nike, didn’t immediately return voicemail and e-mail messages seeking comment. Lauren Lamkin, a spokeswoman for Adidas, declined to comment.
To contact the editor responsible for this story: Robin Ajello at firstname.lastname@example.org