Callaway separates from Topgolf - return to the core golf business

The American golf equipment manufacturer Callaway is ending its era as a broad-based "modern golf" company and is divesting its entertainment subsidiary. Callaway has reached an agreement with private equity firm Leonard Green & Partners (LGP) to sell its majority stake in its subsidiary Topgolf.

The manufacturer of golf clubs and apparel is selling 60 percent of the shares in Topgolf as well as the associated ball flight analysis technology Toptracer. The transaction values Topgolf at around 1.1 billion US dollars. Callaway, which currently operates under the name Topgolf Callaway Brands, expects net proceeds of approximately 770 million US dollars. The sale is expected to be completed in the first quarter of 2026.

Background: Why Callaway is selling Topgolf

Callaway recognized the potential of Topgolf early on and acquired a stake in the concept back in 2006, which transformed driving ranges into experience centers with a sports bar atmosphere. In March 2021, the two companies merged completely, driven by the vision of merging the traditional golf world with entertainment. But after the merger, the company came under pressure. Falling share prices and a growth strategy that required high investments led to a reassessment of the corporate strategy. As early as September 2024, Callaway CEO Chip Brewer signaled the intention to separate.

Brewer justified this step with fundamental differences between the divisions: "At the same time, Topgolf has a different operating model, capital structure and investment thesis than Callaway, and therefore the Board has determined that the separation of Topgolf is the best position for the success of Topgolf and Callaway and maximizes value for shareholders."

The Topgolf deal in detail

This intention has now been realized in the form of a sale. The buyer, LGP, is known for its investments in high-growth consumer brands, including global golf management company Troon. Despite the majority sale, Callaway will retain 40 percent of the shares in Topgolf and thus participate in the future success of the company. This shows that Callaway continues to believe in the long-term growth of Topgolf.

CEO Chip Brewer expressed his satisfaction with the outcome: "After a thorough process and careful evaluation of various alternatives, we believe this sale represents the best outcome for our shareholders, our employees and all other stakeholders. This transaction is extremely attractive as it offers the company both significant proceeds and substantial growth potential for Topgolf."

Fun on the driving range at Topgolf

The future: Callaway Golf Company focuses on core competence

The proceeds from the sale of the Topgolf share are to flow directly into strengthening the core business. Callaway plans to reinvest the funds in its golf equipment and apparel division, reduce debt and return capital to shareholders through share buybacks.

Upon completion of the transaction, the company plans to change its name to Callaway Golf Company and focus on its more stable and higher margin core business. The future brand portfolio will include Callaway and Odyssey golf equipment as well as the lifestyle brands TravisMathew (apparel) and Ogio (accessories). Together, these business units generated sales of around USD 2 billion in the last twelve months up to the third quarter of 2025.

Chip Brewer summarizes the strategic realignment: "Importantly, this transaction supports our strategy to focus on our leading Golf Equipment & Active Lifestyle platform."

Callaway's separation from Jack Wolfskin

The sale of Topgolf is already the second major portfolio adjustment this year, after Callaway had already sold the German outdoor brand Jack Wolfskin in spring 2025. The divestment of Top Golf, which operates 96 locations in the USA and four internationally, marks Callaway's consistent return to its roots as a pure golf specialist.