Callaway has sold 60 percent of Topgolf to Los Angeles private-equity firm Leonard Green & Partners in a deal that values the business at approximately $1.1 billion.
It brings an end to a promising combination of the Callaway golf brand and the Topgolf entertainment business that never lived up to expectations. Callaway began investing in Topgolf in 2006 and the two entities eventually announced a full merger in 2020.
Taking place during the growth of casual golf fans in the midst of the COVID-19 pandemic, the merger put a $2 billion valuation on Topgolf. The stock hit an all-time high of $37.29 per share in 2021 but ultimately dropped more than 70%.
Callaway CEO and president Chip Brewer announced last year the intention to split the entity back into separate companies. Instead, Tuesday’s announcement will see funds managed by Leonard Green acquire a 60% stake in Topgolf.
Leonard Green already held about a 4.9% stake in Topgolf Callaway Brands, which will now cease to exists. The Callaway Golf Company will continue to be publicly traded on the New York Stock Exchange, with Brewer saying the sale is projected to generate about $770 million in net proceeds for Callaway.
The sale is expected to close in the first quarter of 2026.
Brewer will continued to lead Callaway Golf Company, which retains a 40% stake in Topgolf.
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties,” Brewer said in a statement on Tuesday. “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.”
According to the Topgolf website, there are 101 locations in the United States either open or coming soon in 39 states, as well as Washington, D.C.
