Callaway Brands Parent Sells 60% Stake in Topgolf, Valuation Nearly Halved from Previous Deal

U.S. golf equipment and services group Topgolf Callaway Brands announced on November 18 that it has signed a definitive agreement to sell a 60% stake in its Topgolf and Toptracer businesses to private equity firm Leonard Green.

Callaway and Topgolf were originally two independent companies. On October 29, 2020, they announced a stock-for-stock merger to become one company. The transaction values Topgolf at approximately $1.1 billion, roughly half of its valuation when it merged with Callaway five years ago.

After accounting for related financing transactions, the sale is expected to generate net proceeds of approximately $770 million for Topgolf Callaway Brands (final amount subject to purchase price adjustments).

Following the completion of the Topgolf sale in the first quarter of 2026, Topgolf Callaway Brands will revert to its original name, Callaway Golf Company.

President and CEO Chip Brewer said: "This transaction aligns with our strategy to focus on leading golf equipment and active lifestyle platforms. Upon completion, our continuing brand portfolio will include Callaway, Odyssey, TravisMathew, and Ogio. These businesses generated approximately $2 billion in revenue over the trailing twelve months ended in the third quarter of 2025.

Additionally, post-transaction, capital for continuing operations will be more robust, enabling us to reinvest, repay debt, and deliver meaningful capital returns to shareholders through share repurchases or other means. We will work with the Board to finalize the specifics of this capital allocation strategy and the optimal capital structure for the continuing business."

Topgolf was founded in 2000 by brothers Steve and Dave Jolliffe in Watford, England, with the aim of creating a more interactive and fun driving range. Topgolf venues feature a unique infrared sensor system that tracks the accuracy and distance of each shot, allowing players to record their scores and compete against each other. The concept was a huge success from the start.

In 2005, Topgolf expanded to the United States, opening its first overseas location in Alexandria, Virginia. In 2021, Topgolf entered China, opening Lounge by Topgolf in Shanghai (now closed); in October 2024, it opened the first venue in central China in Wuhan. Today, Topgolf operates 113 venues worldwide.

Above: Topgolf Wuhan venue

In 2006, renowned golf equipment manufacturer Callaway first invested in Topgolf, acquiring a 14% minority stake. In 2020, Callaway and Topgolf announced a stock-for-stock merger to form Topgolf Callaway Brands Corp., with Callaway shareholders owning 51.5% of the new company and Topgolf shareholders (excluding Callaway) owning 48.5%.

Above: Lounge by Topgolf in Shanghai

In September 2024, Topgolf Callaway Brands announced that the Board planned to split the group into two independent companies: Callaway and Topgolf, with the group intending to divest no less than 80.1% of Topgolf equity.

For full-year 2024, driven by new venue openings, Topgolf's revenue increased 2.7% ($48.4 million) year-over-year to $1.8094 billion.