[Photo: Boston Globe]
Callaway has agreed to unload its majority stake in Topgolf for over $US 1 billion.
OTHER: Aussies, prizemoney and other things to know about the LPGA Tour season finale
Callaway recognised 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, finalising 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 in the US 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 $US1.1 billion. The Topgolf brand boasts more 96 locations in the US along with four international venues.
OTHER NEWS: LIV Golf adds Frenchman Victor Perez to 2026 roster
“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.”
Brewer said his company expects to pocket about $US770 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.
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 was No. 1 in equipment club sales in 2024 in the US and the No.2 ball brand behind Titleist. Odyssey putters, Ogio accessories, Travis Mathew apparel, and Jack Wolfskin outdoor apparel are also under the Callaway business portfolio.
