Korean fashion retailer F&F escalated its dispute with private equity firm Centroid Investment Partners over the planned sale of TaylorMade Golf, threatening to deploy legal measures to block the transaction.
F&F, which operates Discovery Expedition and MLB brand licenses, claims it secured contractual rights including consent provisions and right of first refusal when it invested approximately 500 billion won ($350 million) in the 2021 acquisition. The company asserts these rights were deliberately structured to support its ultimate goal of acquiring the golf equipment maker.
Centroid has selected JPMorgan and Jefferies to manage TaylorMade’s sale, targeting a $3.5 billion valuation for the golf brand it acquired for $1.7 billion in 2021. The proposed sale price represents roughly 15 times TaylorMade’s 2023 earnings before interest, tax, depreciation and amortization of $220 million.
However, F&F suggests postponing the divestment citing the company’s business performance, creating what industry observers describe as a significant hurdle to the transaction.
The dispute highlights the complex dynamics between general partners and limited partners in Korean private equity deals. F&F secured a 57.8 percent stake in the investment fund and maintains it holds veto power over major decisions affecting TaylorMade’s ownership structure.
The fashion company’s resistance could complicate what would be one of Korea’s largest sports industry transactions.
