Topgolf Callaway in talks to sell Topgolf unit for about $1 billion, source says (updated)

Callaway Golf

14/11/2025 18:30

Changes sourcing in paragraph 1, updates shares

By Abigail Summerville

Nov 14 (Reuters) - Golf-equipment maker Topgolf Callaway Brands MODG.N is in talks to sell its Topgolf unit to private equity firm Leonard Green in a deal that could value the business at about $1 billion, a source familiar with the matter told Reuters.

Shares of the Carlsbad, California-based company rose about 7% in afternoon trading on Friday.

The talks, which could result in a deal or fall through according to the source, were first reported by the Wall Street Journal on Friday.

Los Angeles-based Leonard Green, which already holds a minority stake in Topgolf, has shared feedback with the company's management about the business, WSJ said.

Topgolf Callaway and Leonard Green did not immediately respond to Reuters' requests for comment.

Formed in 2021 through the merger of Callaway Golf and Topgolf, the company announced in September 2024 that it would split its two divisions to maximize shareholder value.

The move followed a steep 73% decline in the company's shares from their 2021 post-merger highs, driven by investor concerns leading up to last year's announcement.

Leonard Green, which manages $75 billion in assets, according to its website, has a diverse portfolio spanning consumer, healthcare, and business services sectors.

 (Reporting by Prerna Bedi in Bengaluru and Abigail Summerville in New York; Editing by Tasim Zahid and Alan Barona)

 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616))