Key Takeaways
- • Los Angeles-based private equity firm Corbel Capital Partners is acquiring Motocaddy, the UK-based electric trolley manufacturer, for an undisclosed amount.
- • Motocaddy's existing management team will remain in place, with CEO John Helas and CFO Richard Inglis joining the company's new board of directors.
- • Seller ETHOS Partners, a small London-based private investment office, acquired a majority stake in Motocaddy in 2019 and reportedly doubled the company's size during its ownership.
- • Corbel Capital manages over $1 billion in assets, mainly in business services and technology; Motocaddy is its first golf investment and first consumer-facing product.
- • MyGolfSpy argues the deal should be met with cautious optimism, citing Motocaddy's product track record and the continuity of management.
Summary
Corbel Capital Partners, a Los Angeles-based private equity firm, is buying Motocaddy, the UK-based electric trolley company, for an undisclosed price, according to MyGolfSpy. Motocaddy said its existing management team will stay in place, and CEO John Helas and CFO Richard Inglis will join the new board of directors. Helas said in the press release that Corbel represents "an exciting next step for the business" and pointed to significant opportunities ahead, particularly in North America. Corbel principal Christian Hostetter described Motocaddy as "the clear category leader with a loyal customer base, a strong pipeline of new products and significant room to grow in North America."
The seller, London-based ETHOS Partners, acquired a majority stake in Motocaddy in 2019 using money from its partners and select individual clients. MyGolfSpy describes ETHOS as a small private investment office rather than a typical PE firm. Reports indicate Motocaddy roughly doubled in size under ETHOS ownership, and the company opened a new North American distribution and service center in Southern California. MyGolfSpy notes that continued growth may require more capital for product and production, which could explain the sale to a deeper-pocketed owner. Corbel, while not considered a large PE firm, manages over $1 billion in assets, primarily in business services and technology, and this transaction marks its first golf investment and first consumer-facing product.
MyGolfSpy argues that private equity ownership of golf companies is not inherently negative, noting that high-profile failures such as Toys "R" Us and KKR's 1996 $900 million leveraged buyout of Spalding, which went bankrupt in 2003, are exceptions rather than the rule. The outlet cites successful examples including Acushnet's 2011 acquisition by a FILA Korea and Mirae Asset consortium and KPS Capital's 2017 purchase of TaylorMade from adidas for $425 million, which KPS sold to Centroid in 2021 for $1.7 billion. The article also notes that ETHOS used modest debt and retained management, and that Helas, who was already at Motocaddy when ETHOS acquired it, is staying under the new ownership. MyGolfSpy speculates that Corbel will likely invest in R&D, production and distribution, particularly in the U.S., though it acknowledges this is speculation.
The seller, London-based ETHOS Partners, acquired a majority stake in Motocaddy in 2019 using money from its partners and select individual clients. MyGolfSpy describes ETHOS as a small private investment office rather than a typical PE firm. Reports indicate Motocaddy roughly doubled in size under ETHOS ownership, and the company opened a new North American distribution and service center in Southern California. MyGolfSpy notes that continued growth may require more capital for product and production, which could explain the sale to a deeper-pocketed owner. Corbel, while not considered a large PE firm, manages over $1 billion in assets, primarily in business services and technology, and this transaction marks its first golf investment and first consumer-facing product.
MyGolfSpy argues that private equity ownership of golf companies is not inherently negative, noting that high-profile failures such as Toys "R" Us and KKR's 1996 $900 million leveraged buyout of Spalding, which went bankrupt in 2003, are exceptions rather than the rule. The outlet cites successful examples including Acushnet's 2011 acquisition by a FILA Korea and Mirae Asset consortium and KPS Capital's 2017 purchase of TaylorMade from adidas for $425 million, which KPS sold to Centroid in 2021 for $1.7 billion. The article also notes that ETHOS used modest debt and retained management, and that Helas, who was already at Motocaddy when ETHOS acquired it, is staying under the new ownership. MyGolfSpy speculates that Corbel will likely invest in R&D, production and distribution, particularly in the U.S., though it acknowledges this is speculation.
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