Topgolf has a new owner with Leonard Green & Partners purchasing a 60% stake of the brand in an $800 million deal with Topgolf Callaway.
Both the Topgolf and Toptracer businesses have been up for sale for some time and Topgolf Callaway have found a purchaser in the shape of private equity funds managed by Leonard Green & Partners.
A controlling 60% stake was purchased for $800 million in cash proceeds, valuing the overall business at $1.1 billion.
“I am very pleased to report today that we have completed the sale of a majority interest in Topgolf,” commented Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands.
“This transaction positions both companies as separate, well-capitalized, focused, pure play businesses that should thrive in their respective spaces.
“It also maintains the strong marketing synergies via a strategic marketing partnership and provides the opportunity for future value creation through our 40% retained stake in Topgolf.
“Further, with our repayment of $1 billion in debt, and our Board’s approval of a new share repurchase program, we are not only significantly reducing our leverage but also reinforcing our commitment to delivering long-term value for our shareholders.”
As a result of the deal with the new owner, Topgolf Callaway Brands will change name to the Callaway Golf Company.
That will be solely a golf equipment arm with a portfolio of global brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO.
Read Full Details About The Deal…