Topgolf Callaway sells majority stake in unit at $1.1 billion valuation (updated)

Callaway Golf

18/11/2025 11:46

Adds CEO quote in paragraph 5, details and background on the merger and stock performance throughout

Nov 18 (Reuters) - Golf-equipment maker Topgolf Callaway Brands MODG.N agreed to sell a majority stake in its Topgolf unit to private equity firm Leonard Green on Tuesday, valuing the business at $1.1 billion and marking an end to the partnership roughly five years after a merger.

Topgolf's valuation is nearly half of Callaway and its merger value in 2021.

Callaway will receive $770 million in net proceeds from the sale of its 60% stake in the golf venues business.

Topgolf Callaway said in September last year it was considering a split of its eponymous units to maximize shareholder value, after the company's stock had plunged over 73% from its post-merger highs leading up to the announcement.

"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," Topgolf Callaway Brands CEO Chip Brewer said.

The Carlsbad, California-based company will revert to its original name Callaway Golf Company upon the closing of the sale in the first quarter of fiscal 2026.

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

 (Reporting by Prerna Bedi in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel)

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