CALLAWAY SELLS TOPGOLF FOR $1.1 BILLION

Callaway has agreed to unload its majority stake in Topgolf for over $1 billion.

Callaway recognized Topgolf's potential early, investing in the company in 2006 when it was transforming driving ranges into high-energy destinations that blended competitive gameplay with sports bar atmosphere. The equipment maker eventually controlled as much as 14 percent of the business before the two entities announced a full merger in October 2020, finalizing it the following March. However, after the company's stock price dropped, Callaway CEO and president Chip Brewer announced last year his intention to split the combined entity back into separate, independent companies.

Those intentions became reality Tuesday when Callaway sold 60 percent of its Topgolf unit to Los Angeles private-equity firm Leonard Green in a deal valuing the entertainment business at approximately $1.1 billion. The Topgolf brand boasts more 96 locations in the United States along with four international venues

"As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties," Brewer said in a statement. "After a robust process and a thorough evaluation of a range of alternatives, we believe this sale is the best outcome for our shareholders, as well as our employees and other stakeholders. This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf."

While the original Callaway Topgolf merger involved an all-stock transfer of 90 million shares of Callaway common stock to Topgolf shareholders, Brewer said his company expects to pocket about $770 million in net proceeds from the sale, which should close in the first quarter of next year. Toptracer, the ball-flight analytics and gaming technology brand, will also transfer to Leonard Green.

The Topgolf deal is the second major change in the Callaway portfolio this year. In April, the company announced that it was selling the Jack Wolfskin brand to Anta, Chinese multinational sportswear company, for a reported $290 million. Jack Wolfskin, a German brand known for it outdoor apparel and camping accessories. Callaway had purchased the company in early 2019 for a reported $476 million. 

Callaway plans to plow the proceeds back into its equipment and apparel businesses while paying down debt and returning capital to shareholders through stock repurchases. The split allows Callaway—which will be renamed Callaway Golf Company—to refocus on its strength: making equipment. The company is No. 1 in equipment club sales in 2024 in the United States and the No. 2 ball brand behind Titleist. Odyssey putters, Ogio accessories and Travis Mathew apparel are also under the Callaway business portfolio.

2025-11-18T22:41:51Z