Callaway sells its majority stake in Topgolf to refocus on its core golf equipment and apparel business.
U.S.-based golf equipment giant Callaway has officially announced the sale of its majority stake in Topgolf, marking a strategic shift back to its core operations. The company has agreed to sell 60% of its shares in the entertainment-driven golf venue chain for $1.1 billion. Callaway first invested in Topgolf in 2006, recognizing early the potential of combining golf with entertainment and hospitality, including sports bars and social experiences beyond traditional driving ranges.
From Merger to Separation
Callaway initially acquired a 14% stake in Topgolf, eventually 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 September 2024, Brewer stated, “Topgolf is transforming the game of golf and will generate significant financial returns over time. However, it operates under a different business model, capital structure, and investment thesis than Callaway. Therefore, the board concluded that separating Topgolf is the best path to success for both companies and maximizes shareholder value.”
The buyer, Los Angeles-based private equity firm Leonard Green, holds investments in 95 companies, including Petco and The Container Store. The deal, which includes Callaway’s Toptracer brand, is expected to yield $770 million in net proceeds and close in Q1 2026.
CEO Brewer: ‘Best Outcome for Shareholders and Employees’
“We explored several alternatives for separating Topgolf, including a potential spin-off, and received interest from multiple parties,” Brewer said in a statement. “After a thorough process and careful evaluation, we believe this sale delivers the best outcome for our shareholders, employees, and stakeholders. It provides significant proceeds and strong growth potential for Topgolf.”
Earlier in 2025, Callaway also sold German outdoor brand Jack Wolfskin to China’s Anta Sports, which it had acquired in 2019 for around $500 million. Now rebranding as Callaway Golf Company, the firm plans to reinvest proceeds into its equipment and apparel divisions, reduce debt, and return capital to shareholders through stock 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 four international venues, including sites in Oberhausen, Germany, and Vienna, Austria.