Golf-equipment maker Topgolf Callaway Brands agreed to sell a majority stake in its Topgolf unit to private equity firm Leonard Green on Tuesday, valuing the business at $1.1 billion and marking an end to the partnership roughly five years after a merger.
Topgolf’s valuation is nearly half of Callaway and its merger value in 2021.
Callaway will receive $770 million in net proceeds from the sale of its 60% stake in the golf venues business.
Topgolf Callaway said in September last year it was considering a split of its eponymous units to maximize shareholder value, after the company’s stock had plunged over 73% from its post-merger highs leading up to the announcement.
“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,” Topgolf Callaway Brands CEO Chip Brewer said.
The Carlsbad, California-based company will revert to its original name Callaway Golf Company upon the closing of the sale in the first quarter of fiscal 2026.
Los Angeles-based Leonard Green manages $75 billion in assets, according to its website, and has a diverse portfolio spanning consumer, healthcare and business services sectors.
Source: Reuters.com