Bruce Taylor wrote:
Looks like they may be around for a while. I would hate to see them go or get out the component business. Even though they have been a pain to deal with from time to time, they offer some good products.
Bruce
FYI, below is a message from GS regarding the change of ownership. It does
not sound to me like they plan on closing the component division any time
soon, and even mention adding "another established "brand" to custom
clubmakers".
Dan Neubecker
A MESSAGE
from Carl, Barbara and Frank
About three years ago, we (Frank, Carl and Barbara) decided that the time
had come to sell Golfsmith. On one hand, the magnitude of the company had
simply passed us by in terms of our knowledge of finance, accounting, retail
operations, catalog database management, etc. On the other hand, we owned an
extremely valuable company thanks to the efforts of truly fine employees,
and thanks to the support of many, many equally fine customers. If something
happened to one of us (after all everyone knows that Carl is getting "really
old") our heirs would be forced to sell the company in order to pay
inheritance taxes -- as they would be substantial. And very frankly, we felt
much better equipped to handle a sale than our children might be.
At any rate, we quickly forgot about any plans for a sale as we all focused
on getting through the difficulties of the systems conversion in 2000 (which
I'm sure none of you remember!). Then, after we were back on track, we had a
very good year in 2001 and again started entertaining thoughts of a sale. We
started making presentations to prospective buyers in the spring of this
year. We talked only to highly successful companies with impressive track
records for running and growing companies. It was an eye-opening experience,
having never gone through the process before. We never anticipated the
excruciating level of detail that would be required. There were some
prospective buyers who suggested that they could install a whole new
management team. They didn't realize that that was the last thing we wanted.
We did not want our terrific managers to lose their jobs. We also felt that
these managers were the key to the success we've experienced, and to
maintaining ongoing relationships with our customers.
The whole process started to make some sense after we identified the company
we felt would be the best company to assist in Golfsmith's future growth. We
are writing to let you know that as of October 15, 2002, we have completed
the transaction and sold a majority interest in Golfsmith to First Atlantic
Capital, Ltd., a private equity investment firm from New York. First
Atlantic Capital, Ltd. is a very progressive company that presently owns a
number of very successful companies. They were a pleasure to work with
through a somewhat difficult process, and exude the values that have always
made Golfsmith special. These are very exciting times for Golfsmith, and we
are pleased that we will be able to continue to be a part of it. We retain
significant ownership in the company, are on the Board of Directors and will
continue to work with the company, although our day-to-day roles will
change. Our focus will be the components portion of the business - which we
grew up in and is our passion.
The biggest change for the 1,000 plus employees at Golfsmith (including Carl
and Frank) is that we will all have a new boss. Jim Thompson, formerly the
Senior Vice President of Stores and Merchandising, is the new President and
Chief Executive Officer. He is very knowledgeable, and will be terrific in
his new role. Ken Brugh, a Vice President and Golfsmith employee since 1981,
will have ultimate responsibility for the component division, just as he has
for many years.
We mentioned that these are exciting times for the company. In 2001, the
company experienced the most profitable year in its history, and this year
has been very good (especially considering the slow economy, down stock
market, terrorism, wild fires, etc.) Our Vice President of Research and
Development, Jeff Sheets, and his team, have designed a number of the finest
golf clubhead models we have ever seen in the components industry.
Additionally, as we write this message, the details are being worked out so
that Golfsmith can offer another established "brand" to custom clubmakers.
Details will be released soon.
First Atlantic Capital, Ltd. has a history of success and should be of great
assistance to Golfsmith via their vast business acumen and experience. We
have had the opportunity to meet the founder and the various principals at
First Atlantic during this process, and they are the types of people that we
(employees and customers) will all be proud to be associated with. All three
of us are very grateful for the support that you, our customers, have given
us, and we value the personal relationships we have developed with many of
you over the years. We have always worked to make Golfsmith the very best
supplier in the golf industry, and we look forward to continuing to work
with all of you to make custom clubmaking more successful than ever.
