- Topgolf Callaway Brands is selling a majority stake in Topgolf to Leonard Green & Partners for $1.1B, valuing the chain at half its 2021 worth.
- The deal marks a strategic shift as the company rebrands back to Callaway Golf Co. and redirects focus to golf gear and apparel like Odyssey putters and TravisMathew clothing.
- Despite solid Q3 results, the move follows declining investor sentiment and a 65% stock drop since the 2021 merger between Callaway and Topgolf.
Shifting Strategy
Topgolf Callaway is paring down its business to return to its roots in golf equipment and apparel, per CoStar. The company announced a $1.1B deal to sell a 60% stake in its Topgolf unit to Los Angeles-based Leonard Green & Partners. The transaction values Topgolf at about half the $2B valuation from its full acquisition in 2021.
After the deal closes in early 2025, the company will rebrand as Callaway Golf Co. to refocus on core products.
Breaking Down The Deal
Topgolf operates 111 tech-driven golf venues worldwide and occupies 5.2M SF of space, mostly in suburban areas. Venue sizes range from 2K SF swing suites to full-scale, multi-level complexes.
Topgolf had a strong Q3, with revenue rising to $472M, driven by new openings and slight same-venue growth. However, the company expects 2025 same-venue sales to decline modestly.
The sale will net Callaway about $700M, which CEO Chip Brewer said will be reinvested into its Odyssey, Ogio, and TravisMathew brands. “We believe in Topgolf’s future, but our priority now is maximizing growth in our core categories,” Brewer said in a statement.
Private Equity Comes In
Leonard Green & Partners, which manages $75B in assets, will now control the majority stake in Topgolf. While the firm has a track record of retail acquisitions — including The Container Store and Joann — both of those companies filed for bankruptcy in 2024.
Despite those setbacks, Leonard Green is positioning Topgolf for growth. Expansion is already underway in Wisconsin. A recent venue opened in Woodbury, Minnesota, featuring 102 climate-controlled bays and Topgolf’s signature shot-tracking technology.
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Why It Matters
The move highlights a broader trend of strategic realignments in the face of shifting consumer behavior and investor pressure. Topgolf once represented Callaway’s push to expand beyond golf purists, but casual golf enthusiasm appears to be softening post-pandemic.
By offloading daily operations while maintaining a 40% stake, Callaway can benefit from any future growth while minimizing exposure.
What’s Next
Topgolf will continue expanding its physical footprint, especially in suburban markets and international locations. Meanwhile, Callaway Golf Co. will double down on equipment and lifestyle products. It aims to recapture margin and shareholder confidence with a leaner, more focused business model.
