Sports Equipment Maker Topgolf Callaway To Sell Jack Wolfskin Brand For $290M

Topgolf Callaway Brands Corp. MODG agreed to divest its Jack Wolfskin unit to Chinese sportswear maker ANTA Sports for $290 million in cash.

The transaction is expected to be completed in the second quarter or early third quarter of 2025.

 “This sale will allow us to increase our focus and optimize our resources on our core business. Importantly, the proceeds will further enhance our balance sheet and liquidity, reinforcing our financial flexibility ahead of our planned separation of Topgolf from our core operations,” said Topgolf CEO Chip Brewer.

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Last year, Topgolf’s board revealed plans to split its operations, aiming to separate the Callaway and Topgolf divisions. The company intends to separate by spinning off the Topgolf segment to its shareholders.

While Topgolf Callaway has not updated its fiscal outlook following the deal, the company had earlier forecast Jack Wolfskin to generate roughly 325 million euros ($359.64 million) in revenue for the full year 2025.

This included an anticipated adjusted EBITDA of 12 million euros. The brand's performance is expected to remain seasonal, with an adjusted EBITDA loss of 18 million euros in the first half offset by an adjusted EBITDA of 30 million euros in the latter half.

Topgolf Callaway enlisted Goldman Sachs as its financial advisor for the deal, with Latham & Watkins LLP providing legal counsel.

The company held $445 million in cash and equivalents as of Dec. 31.

J.P. Morgan analyst Matthew R. Boss reiterated a Neutral rating on the company’s shares and warned that Topgolf's same-venue sales will face challenges over the next 12-18 months as both corporate and consumer demand remain below normal levels.

Topgolf Callaway offers equipment, apparel, and entertainment through global brands like Topgolf, Callaway Golf, TravisMathew, Odyssey and OGIO.

Price Action: Topgolf shares traded higher by 1.1% at $6.41 in premarket at last check Thursday.

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