Callaway responds to report that company is for sale

Topgolf Callaway has issued a statement in response to a report that the golf behemoth is for sale.

The Chosun Daily in Korea reported on Wednesday that the organisation’s three largest investors intend to sell their ownership stakes and management rights.

Together, BlackRock Advisors LLC, Providence Equity Partners LLC and Thomas Dundon own 33% of Topgolf Callaway shares.

The same report claimed that a South Korean investment company was the frontrunner to acquire the Callaway golf and apparel business in a deal worth up to $3billion, with the Topgolf arm of the company to be spun off.

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Following this solitary report, the Topgolf Callaway share price soared in pre-market trading to a 2024 high.

That, in turn, prompted Topgolf Callaway to issue a statement, saying: “While it is our long-standing practice not to respond to market rumors [sic] and speculation, in light of today’s unusual market activity, coupled with a media report originating in Korea regarding discussions of a potential sale of the company or its golf equipment business, we confirm that we are not aware of any such discussions.

“We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change.”

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The rumours come at an interesting time, with Topgolf Callaway in exceptionally good health.

It closed 2023 with sales of more than $4.2billion and having posted profits of $95million.

Each one of the company’s three business ‘units’ contributed at least $1bn in sales in 2023. Callaway ended last year as the game’s leading equipment brand, with No.1 market share positions in total clubs, drivers, fairway woods, hybrids and irons.

Anecdotally, two of its biggest competitors are currently owned by South Korean firms.

Acushnet, the parent company of Titleist and FootJoy, was snapped up by Fila in 2011, with TaylorMade acquired by private equity firm Centroid Investment Partners in 2021.

Michael McEwan is the Deputy Editor of bunkered and has been part of the team since 2004. In that time, he has interviewed almost every major figure within the sport, from Jack Nicklaus, to Rory McIlroy, to Donald Trump. The host of the multi award-winning bunkered Podcast and a member of Balfron Golfing Society, Michael is the author of three books and is the 2023 PPA Scotland 'Writer of the Year' and 'Columnist of the Year'. Dislikes white belts, yellow balls and iron headcovers. Likes being drawn out of the media ballot to play Augusta National.

Deputy Editor