The New York Times reports that in 2014, the Darden Group of companies merged with Tayloring Golf Club in an $8.5 billion deal that effectively put Taylorees in a holding pattern.
While the deal was seen as a win for golf clubs across the country, the company’s stock price fell precipitously in the weeks after.
As of this writing, the stock is down nearly 20% since it closed on the news.
Darden and Taylorys have both denied the merger was a bad thing, though it’s likely to be the case for the time being.
The deal also reportedly gave the company more freedom to spend money on acquisitions and expansion.
Dardans top executive, John A. Schmitt, left, and Chief Operating Officer, Scott Siegel, have both been named to leadership roles at the company.
(Photo: Scott Gries/Reuters) Taylores board of directors voted unanimously to approve the deal last month.
While some of Taylorean’s board members have publicly criticized the deal, the board has kept its distance from the news that the deal may be nearing a final decision.
As the Times puts it, “the board’s reluctance to take a public position on the merger’s terms and terms of the agreement could be viewed as a tacit admission that the company has a future.”
The Times notes that “at least some of the board members who supported the merger did so to protect their own interests, and a decision to allow the deal to go forward is likely to result in additional profits for Darden.”
That may not be a great sign for the future of golf in the U.S., but that doesn’t mean the deal is dead.
Taylors board of advisors, which oversees the company, has reportedly agreed to keep its seats on the board as a result of the merger.
Taylorentes board has also been named the CEO of Taylorere Golf Clubs.
In its announcement, the club stated that it will “continue to invest in golf and be a leader in the industry” while the board will “strengthen our leadership team and ensure the best outcomes for the business.”