#United States #Topgolf #Carlsbad #Callaway Golf #Leonard Green

Topgolf Callaway Brands Finalizes Major Stake Sale

Topgolf Callaway Brands Corp. has officially completed the sale of a 60% interest in its Topgolf and Toptracer divisions to Leonard Green & Partners, a significant transaction valued at approximately $1.1 billion. This deal, effective as of January 1, 2026, allows the golf brand to refocus its corporate strategy while maintaining a 40% stake in Topgolf, further solidifying its commitment to the golfing industry.

Enhancing Financial Stability

The transaction, which yielded around $800 million in cash after adjustments for working capital and transaction costs, positions Topgolf to significantly lower its debt. As part of the closing, Topgolf Callaway Brands repaid $1 billion in outstanding loans, leaving the company with an approximate $480 million remaining in debt, which includes convertible notes and term debt. The financial restructuring aims to provide more room for strategic investments and operational flexibility.

CEO Chip Brewer expressed optimism about this new chapter for both Topgolf and Callaway Golf. He stated that the separation supports both entities to thrive independently, while a strategic marketing partnership remains intact. The sale also liberates capital towards further value creation and debt repayment plans, which are crucial given the convertible notes that mature in May 2026.

A New Era for Callaway

In addition to the finalization of the stake sale, Topgolf Callaway Brands is initiating changes to its corporate identity. Come mid-January 2026, the company plans to revert its name back to Callaway Golf Company and will also be changing its ticker symbol on the New York Stock Exchange to CALY. This move highlights a renewed focus on its legacy as a premier golf equipment player.

As the name change unfolds, the company will continue to leverage its premium brands, including Callaway, Odyssey, TravisMathew, and OGIO. With a steadfast obligation to innovation and craftsmanship, Callaway aims to maintain its status as a leading provider of high-performance golf equipment.

Future Growth and Share Repurchase Program

In tandem with the name change and financial adjustments, the company's Board of Directors has authorized a new share repurchase program, allowing the repurchase of up to $200 million in common stock. This initiative aims to enhance shareholder value and will be executed with careful consideration of market conditions and legal requirements.

As Topgolf Callaway Brands steps into this new structure, it is poised for significant growth opportunities. The separation into focused entities is expected to elevate their agility in responding to market demands while ensuring that both brands can pursue growth independently. Topgolf, with its vast entertainment offerings, and Callaway Golf, with its commitment to the game, appear set to forge new paths in their respective sectors.

In conclusion, this strategic alignment and focus on financial health not only mark a momentous change for Topgolf Callaway Brands but also stage a compelling narrative for the future of golf entertainment and equipment. Stakeholders can anticipate exciting developments as both Topgolf and Callaway Golf embark on their separate journeys, each backed by a solid financial foundation and strategic intent.