Callaway sells majority stake in Topgolf

Callaway announced on Tuesday that it has sold 60% of its shares Topgolf to Leonard Green & Partners, a Los Angeles-based private equity firm, in a deal valued at approximately $1.1 billion.

Callaway invested in Topgolf in 2006 because they saw the potential in the golf entertainment entity that combines a driving range with games and a sports bar atmosphere that both novice and serious golfers can enjoy. For more than a decade, Callaway owned a smaller portion of Topgolf, about 14% of the company. In 2020, it was announced that a full merger would take place between Topgolf and Callaway, the deal was completed in the spring of 2021. Since then, Callaway has seen their stock price drop 45%, from $37 per share in May 2021 to $10 per share today.

After Callaway’s stock price fell last year, the company’s CEO Chip Brewer announced that Callaway would split some of its entities back into independent companies, separate from Callaway, and return to a simpler business philosophy.

“Following the transaction, our continuing brand portfolio will consist of: CallawayOdyssey, TravisMathew and Ogio,” said Brewer. “These companies generated approximately $2 billion in revenue over the past twelve months through the third quarter of 2025. In addition, following the completion of this transaction, the ongoing operations will be well capitalized, allowing us to continue to reinvest in our businesses, pay down debt and deliver meaningful capital returns to shareholders through share repurchases or other means. We will work with our board of directors to determine the details of this capital allocation strategy, as well as the optimal capital structure for our ongoing operations.”

Brewer also said his company expects to pocket approximately $770 million in net proceeds from the sale, which should close this coming spring. Toptracer, the ball flight analysis and gaming technology brand, will also transfer to Leonard Green & Partners.

While Callaway is sitting back on the equipment, this is the second sale the company has made this year that has changed its portfolio. In April they announced that they would sell the Jack Wolfskin brand from Germany Anta Chinese sportswear company for $290 million. Callaway had bought Jack Wolfskin in 2019 for more than $450 million, so they will also sell that brand at a loss.

Callaway reportedly plans to put the proceeds back into its equipment and apparel businesses while paying down debt and returning capital to shareholders through share repurchases. In 2024, the company was number one in equipment sales in the United States and number two in golf ball sales, behind Title list. As they refocus on this part of their business, they hope to remain a top player in the golf club and equipment industry.

Mike is a founding member of Break80 Golf and a contributing golf and sports writer for Forbes with PGA Tour and LIV Golf media credentials. He can be found on the social media platforms @short_sided_golf