Callaway announces split from Topgolf

Topgolf Callaway Brands Corp has announced that Callaway Golf and Topgolf are to split into separate businesses and operate independently from one another.

The move was announced by president and CEO Chip Brewer in a statement on Wednesday.

“Over the last decade plus, we have transformed Callaway into the No.1 brand in golf equipment, while building a successful and complementary apparel and accessory business,” said Brewer

“We believe this business, on a stand-alone basis, will be well understood and valued by the market.

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“Since our merger with Topgolf, we have made considerable investments in the Topgolf business that have dramatically expanded its scale, digital capabilities and venue profitability.

“These investments, combined with the hard work of the Topgolf team, have allowed us to outperform our original growth and free cashflow expectations.

“Looking forward, we remain convinced that Topgolf is a high-quality, free cash flow generating business with a significant future value-creation opportunity.”

Callaway first invested in Topgolf back in 2006 and, in October 2020, announced its intention to merge the companies. That process was completed early in 2021.

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However, since then, the company’s share price has fallen from $28.50 to $10.76.

“Today’s announcement is the result of a thorough strategic review conducted by the Board of Directors and the management team,” said John Lundgren, chairman of the board of directors of Topgolf Callaway Brands.

“The creation of two independent companies, each with a distinct focus and proven business model, is intended to drive continued momentum in both businesses and deliver value to all our shareholders.”

Moving forward, Callaway will consist of the company’s existing golf equipment and active lifestyle brands, such as TravisMathew and Jack Wolfskin. Interesting, it will also include Toptracer.

Topgolf, meantime, will consist of the existing Topgolf business, which operates 100 ‘pure-play venue-based’ golf entertainment venues in the US and internationally.

The spin-off is expected to take place in the second half of 2025.

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