This article first appeared in our sister publication, Shop Eat Surf Outdoor (SESO)
Topgolf Callaway Brands will change its name and sharpen its focus on golf equipment and active lifestyles after entering an agreement to sell a 60% stake in its Topgolf and Toptracer businesses to private equity firm Leonard Green & Partners (LGP).
The company expects to receive roughly $770 million in net proceeds from the sale, which it plans to use to strengthen its financial position and deliver value to shareholders, according to a news release.
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties,” said Chip Brewer, president and CEO of Topgolf Callaway Brands, 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.”
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The Details of the Deal
Topgolf Callaway Brands will retain a 40% interest in the Topgolf business, allowing it to continue benefiting from the brand’s future growth, said the release.
“This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf,” Brewer said.
The transaction has been unanimously approved by the Topgolf Callaway Brands board of directors and is expected to close in the first quarter of 2026, pending regulatory approvals.
Name Change, Golf Equipment & Active Lifestyle Focus
The transaction supports the company’s strategy of focusing on its golf equipment and active lifestyle platform, Brewer said. Post-transaction, the company’s brand portfolio will consist of: Callaway, Odyssey, TravisMathew and Ogio.
These businesses generated approximately $2 billion in revenue over the last 12 months through Q3 2025. On the Q3 earnings call earlier this month, executives said the company recorded $12 million in incremental tariff expenses in the quarter and expects $40 million in tariff expenses for the full year. The company is trying to offset the impacts with “efficiency improvements,” which led to 300 job cuts, as well as pricing and vendor negotiations.
Post-transaction, the company plans to change its name to Callaway Golf Company and update its stock ticker to CALY on the New York Stock Exchange.
“…After the closing of this transaction, the ongoing business will be well-capitalized, enabling us to continue to reinvest in our businesses, pay down debt and deliver a meaningful return of capital to shareholders via stock repurchases or other means,” Brewer said. “We will work with our board of directors to determine the specifics of this capital allocation strategy, as well as the optimal capital structure for our ongoing business.”
