South Korea's Daol Private Equity, formerly known as KTB Private Equity, is in exclusive talks to buy the entirety of SuperStroke, a US golf grips maker, for around 300 billion won ($250 million), according to people with knowledge of the situation on Monday.
Daol is also looking for a strategic investor to make a joint acquisition of the US company, known as a golf equipment brand for top professional golfers such as Rory Mcllroy, Jordan Spieth and Dustin Johnson.
SuperStroke, headquartered in Michigan, came on the market in the second half of last year. At the time, another Korean investment firm was considering a bid.
After the unidentified Korean company gave up its bid for an unknown reason, Daol PE jumped into the race and became a frontrunner for the deal.
SuperStroke is jointly owned by its founder and CEO Dean Dingman, along with PE firms including EG Capital and Five Points Capital.
Starting as a manufacturer of putter grips in 1998, the company is now offering a series of grips attached to 14 types of golf clubs including drivers and irons. Its sales in 2021 were estimated at $30 million.
Made of high-end rubber and synthetic polymers, its grips became popular in 2007 when South Korean professional golfer K.J. Choi won a PGA Tour tournament using the company's grip.
Since it was introduced to South Korea in 2018, most South Korean professional golfers use SuperStroke grips.
Daol PE is one of the country's first-generation homegrown PE houses, launched in 2005 as an in-house PE division of KTB Investment & Securities Co. Last month, the brokerage company
changed its name to Daol Investment & Securities, along with its affiliates.
Earlier this year, the PE house reaped
a near twofold return from Farmacy Beauty, after Procter & Gamble (P&G) acquired the US skincare brand.
Last year, Daol PE took full control of Sungmyung Ind. Co., a domestic wrapping paper and packaging materials producer, from leading Korean underwear brand BYC Co. It also acquired MG Food Solution, a Korean seasoning sauce maker in the same year.
Last month, its Vice President Um Young-bum took over as CEO, replacing Song Sanghyon who had led the PE firm since mid-2016.
Write to Si-Eun Park at
seeker@hankyung.comYeonhee Kim edited this article.
