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Titleist IPO, Acushnet, Footjoy, Pinnacle 2016
Acushnet, the maker of Titleist ProV1 golf balls (pictured) among others, is set for an IPO with a company value of $1.7 billion.

Are you ready to put your money where your ball is?

According to a report in the Boston Globe, Acushnet—the Massachusetts-based maker of Titleist golf balls and clubs, Vokey wedges, Scotty Cameron putters and FootJoy apparel—is set to make an initial public offering of its stock next week.

The stock will use the ticker symbol GOLF on the New York Stock Exchange. Estimates put the company’s value at around $1.7 billion. It will reportedly sell 19.3 million shares at a price between $21 and $24, a combination that would yield investors approximately $435 million.

Acushnet IPO - FootJoy Solid Pique Knit Collar Shirt .
Acushnet also owns FootJoy, makers of golf apparel such as this Solid Pique Knit Collar Shirt

Talks of an Acushnet IPO have circulated for months. The Massachusetts-based company, which has been owned since 2011 by a group led by Fila Korea Ltd., also manufactures FootJoy golf wear and Pinnacle golf balls. It reportedly employs 5,200 people worldwide.

Acushnet notes that 46% of its sales from from outside the U.S. and that overall net sales were up 6.4% in the three months ended March 31 to $442.8 million.

Footwear appears to be one of the company’s fastest-growing segments. Its FootJoy business grew sales 16.6% in the March quarter, when stripping out a slightly negative currency impact, compared with a gains of 9.4% and 8.7% for Titleist clubs and gear.

Sales in Japan, Korea and the company’s Europe, Middle East and Africa geographies all grew at least 10% year-over-year, while U.S. sales grew 5.1%.

FootJoy HyperFlex Golf Shoe - Acushnet IPO
Pictured: FootJoy HyperFlex Golf Shoe.

According to federal filings, Acushnet posted a $966,000 net loss in 2015 while overall sales increased 2 percent to $1.5 billion.

This news comes on the heels of Nike leaving the golf equipment business and TaylorMade-Adidas positioning TaylorMade for sale. Among other major golf manufacturers, Callaway (NYSE: ELY) is already publicly traded and PING remains privately held.

According to its website, in 2016 alone Titleist golf ball players have recorded 159 victories around the world, more than five times the nearest competitor with 29. Since its introduction in 2000, the Pro V1 golf ball franchise has been the golf ball of choice for more than 2,500 champions worldwide.

Acushnet IPO - Jordan Spieth plays Titleist clubs and balls and putts with a Scotty Cameron.
Jordan Spieth famously wears Under Armour apparel but plays Titleist clubs and balls and putts with a Scotty Cameron.

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Colorado AvidGolfer is the state’s leading resource for golf and the lifestyle that surrounds it, publishing eight issues annually and proudly delivering daily content via coloradoavidgolfer.com. Follow us on Twitter, Facebook and Instagram.

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