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Home MONEY TALKS:

Follow the money” is a catchphrase popularized by the 1976 motion picture All The President's Men. In the context of the movie, the phrase was attributed to Deep Throat, the informant who took part in revealing the Watergate Scandal. However, the term has stuck throughout time and is a variation of the old adage, money talks and you know what walks!

While Nike has decided to step away from golf, it remains the anomaly. In a recent Securities and Exchange filing, Fila reported its intention to acquire an additional 20% from exiting investors in the Acushnet Company, owner of Titleist and FootJoy brands. The disclosure was an amendment to the initial public offering that is currently being conducted. Upon completion, Fila’s new position will represent a 53% holding in Acushnet and therefore it becomes a controlled company as defined by the SEC. It’s a safe assumption that Fila is committed to being a long-term investor in the company and would want Acushnet to maintain current strategic direction, thus the reason for adding to its original investment.

Within the filing, Acushnet’s six-month operating results were also disclosed. It reported net sales of $902.9 million, an improvement of 4.6% from 2015. Operating Income was $125.7 million, up 10.3%, while net income came in at $41.4 million, up 54.8% from 2015.