Callaway is selling its majority stake in Topgolf for $1.1 billion to refocus on its core golf equipment and apparel business.
Golf equipment giant Callaway has announced the sale of its majority stake in Topgolf, marking a strategic shift back to its core business. The company will sell 60% of its shares in Topgolf to Los Angeles-based private equity firm Leonard Green for a valuation of $1.1 billion. Callaway first invested in Topgolf in 2006, recognizing early the potential of entertainment-driven driving ranges that blend golf with a social, sports bar atmosphere.
From merger to divestment
Callaway initially held a 14% stake in Topgolf before fully merging with the company in March 2021. However, following a decline in stock value, CEO Chip Brewer announced plans in 2024 to separate the two entities. In a statement from September 2024, Brewer emphasized that while Topgolf is transforming the game and holds long-term financial promise, its operational model and capital structure differ significantly from Callaway’s. The board concluded that a separation would better position both companies for success and maximize shareholder value.
With the sale to Leonard Green, Callaway expects to net $770 million, with the transaction set to close in Q1 2026. The deal also includes the divestiture of Callaway’s Toptracer brand.
Refocusing on core strengths
“We explored several alternatives for separating Topgolf, including a potential spin-off, and received interest from multiple parties,” Brewer said. “After a thorough process, we believe this transaction delivers the best outcome for our shareholders, employees, and stakeholders. It provides significant proceeds and growth potential for Topgolf.”
Earlier in 2025, Callaway also sold the German outdoor brand Jack Wolfskin to China’s Anta Sports, which it had acquired in 2019 for around $500 million. The company, now returning to its original name Callaway Golf Company, plans to reinvest proceeds into its equipment and apparel divisions, reduce debt, and initiate share buybacks. Callaway remains a market leader in golf clubs in the U.S., with a portfolio that includes Odyssey putters, Ogio accessories, and Travis Mathew apparel.
Topgolf currently operates 96 locations across the U.S. and has four international sites, including in Oberhausen, Germany, and Vienna, Austria.