Turf battle brings new owner for iconic AstroTurf
One of the most iconic brands in American sports, AstroTurf, filed Chapter 11 bankruptcy and announced its acquisition by Munich, Germany-based company SportGroup Holdings this week, marking a significant moment in the athletic brand’s history.
SportGroup Holdings is a multi-national athletic playing surface firm with more than 1,000 employees and will acquire the manufacturing and assembly facilities associated with AstroTurf and SYNlawn in Dalton — along with some other brands and facilities. AstroTurf is receiving around a $16 million share of the deal which is valued, according to court documents, at $92.5 million.
AstroTurf filed for bankruptcy reorganization after a court granted a $30 million judgment against the company stemming from a patent infringement lawsuit brought against AstroTurf by its rival company FieldTurf USA.
FieldTurf USA, which has a plant 40 miles south of Dalton in Calhoun, Ga., filed suit against AstroTurf in 2010. In October of last year, a judge ruled FieldTurf entitled to seek damages, though AstroTurf officials say they will continue to dispute the judgement and that FieldTurf brought the suit just to hinder AstroTurf or even put it out of business.
Sydney Stahlbaum, an AstroTurf spokeswoman, said Thursday the Dalton AstroTurf plant will remain in continuous operation, and “the transition will not affect our ability to meet deadlines
in construction, manufacturing, or shipments.”
Stahlbaum said the acquisition is a positive move forward for AstroTurf, which pioneered artificial playing surfaces in the United States as early as the 1960s.
“It will strengthen the AstroTurf brand and enable us to bring even more innovations to market,” she said. “We will be part of one of the largest sports surfacing companies in the world, and we are keenly focused on our future as the industry leader.”
SportGroup Holding owns the Polytan, APT, Melos, Rekortan, Laykold and Poligras brands and companies. It was founded in 1969 and produces the equivalent of more than $451 million in revenue. SportGroup is owned by Equistone Partners Europe Limited.
“IT WILL STRENGTHEN THE ASTROTURF BRAND AND ENABLE US TO BRING EVEN MORE INNOVATIONS TO MARKET. WE WILL BE PART OF ONE OF THE LARGEST SPORTS SURFACING COMPANIES IN THE WORLD, AND WE ARE KEENLY FOCUSED ON OUR FUTURE AS THE INDUSTRY LEADER.” –SYDNEY STAHLBAUM, AN ASTROTURF SPOKESWOMAN
AstroTurf lobbied courts for the private sale to SportGroup rather than face sale at a public auction, largely because the AstroTurf brand and intellectual property are owned by Dalton-based Textile Management Associates.
In court filings, AstroTurf representatives say Textile Management Associates refused to allow the AstroTurf brand or property to be sold outside the deal with SportGroup, who has been reportedly seeking to buy AstroTurf for nearly three years.
And without the AstroTurf brand and name, “any potential buyer (other than SportGroup) could not conduct the business as it currently exists and, as a result, any purchase price offered by a buyer other than (SportGroup) would be lower than that provided for in this agreement,” AstroTurf representatives argue.
AstroTurf sought to maximize its sale price to ensure “the best recovery for its stakeholders” and “to make substantial distributions to creditors.”
The next hearing on AstroTurf’s bankruptcy case is scheduled for Aug. 8, in Atlanta.
Contact staff writer Alex Green at agreen@timesfreepress.com or 423-757-6480.