Topgolf Callaway Brands announced an agreement to sell a 60 percent stake in its Topgolf and Toptracer businesses to private equity firm Leonard Green and Partners, valuing the businesses at approximately $1.1 billion. The deal will provide the company with about $ 770 million in net proceeds following purchase price adjustments and marks a significant strategic shift as the company narrows its focus to its core Golf Equipment and Active Lifestyle platform.
The agreement will leave Topgolf Callaway Brands with a 40 percent ownership position in Topgolf while giving Leonard Green and Partners majority control. The company noted that the sale follows a broad review of strategic alternatives to separate the Topgolf business, which included interest from multiple parties and an evaluation of a potential spin-off.
Topgolf Callaway Brands stated that the transaction is designed to strengthen its balance sheet, provide flexibility for reinvestment, support debt reduction, and enable shareholder returns through potential share repurchases or other capital allocation tools. The company’s remaining portfolio, consisting of Callaway, Odyssey, TravisMathew, and Ogio, generated about $2 billion in revenue over the 12 months ending in the third quarter of 2025.
The deal was unanimously approved by the Board of Directors and is expected to close during the first quarter of 2026. It remains subject to regulatory approvals and customary closing conditions. Leonard Green and Partners has secured both debt and equity commitments to support the acquisition, and the deal carries no financing contingencies.
Upon completion of the deal, Topgolf Callaway Brands will change its name to Callaway Golf Company and will update its New York Stock Exchange ticker symbol to CALY. Its shares will continue trading uninterrupted throughout the transition. Goldman Sachs and Centerview Partners are advising the company, with Latham and Watkins serving as legal counsel. Moelis and Company is advising Leonard Green and Partners, with Ropes and Gray as corporate legal counsel and Sidley Austin as financing counsel.
KEY QUOTES:
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties. 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.”
“LGP is a leading private equity firm with a track record of success in investing in high-growth consumer companies and is an ideal partner for Topgolf in its next chapter. I am proud of the Topgolf team and all the hard work that has gone into driving the business forward over the last five years. Today’s announcement reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be part of. We look forward to partnering with LGP to further accelerate Topgolf’s growth and financial success.”
“Importantly, this transaction supports our strategy of focusing on our leading Golf Equipment & Active Lifestyle platform. Post-transaction, our ongoing brand portfolio will consist of: Callaway, Odyssey, TravisMathew and Ogio. These businesses generated approximately $2 billion in revenue over the last twelve months through Q3 2025. Furthermore, after the closing of this transaction, the ongoing business will be well-capitalized, enabling us to continue to reinvest in our businesses, pay down debt and deliver a meaningful return of capital to shareholders via stock repurchases or other means. We will work with our board of directors to determine the specifics of this capital allocation strategy, as well as the optimal capital structure for our ongoing business.”
Chip Brewer, President And Chief Executive Officer, Topgolf Callaway Brands
