Callaway Sells Topgolf To Private Equity Firm In $1.1bn Deal

Callaway is set to sell its majority stake in tech-driven driving range company Topgolf to private equity firm Leonard Green Partners in a deal worth $1.1bn.

The first Topgolf facility opened in Watford near London, England, in 2000. Since then, it has expanded to over 100 locations worldwide.

Callaway first bought a stake in the company in 2006, with the companies signing off on a $2bn merger in March 2021.

However, in September 2024, Callaway Topgolf Brands announced a separation of the two companies into individual entities following a “strategic review,” with the possibility of Topgolf being sold off not being ruled out.

At the time of the announcement, Topgolf Callaway Brands president and CEO Chip Brewer explained in a statement that it was being done because “Topgolf has a different operating model, capital structure and investment thesis than Callaway."

However, against the backdrop of a fall in the stock price and a drop in Topgolf's venue sales, he hinted at a possible sale of the company in the future, adding: “If there is an identified and actionable path that could include a sale or another path that is more attractive for shareholders, we will obviously explore that path.”

Now, 14 months later, the sale is going ahead, with Leonard Green Partners agreeing to acquire 60% of Topgolf.

The LA-based private equity company already held a 3% stake in Topgolf Callaway Brands, and Brewer said the sale represents the “best outcome.”

He said in a statement: “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."

The deal, which includes Callaway’s Toptracer unit, will benefit Topgolf Callaway to the tune of $770m, with plans to use the funds to reduce debt and buy back shares.

It is anticipated the sale will be completed in the first quarter of 2026.