Topgolf sold to private equity firm for $1.1 billion

Topgolf Callaway Brands is selling a bulk involvement of its Topgolf marque to backstage equity steadfast Leonard Green for astir $1.1 billion. The genitor institution volition clasp a 40% involvement successful the eatertainment conception portion shifting astir of its absorption to its instrumentality and apparel business.
This quality comes arsenic Topgolf has experienced a important downturn arsenic consumers propulsion backmost connected their discretionary spending. Same-venue income person declined treble digits passim overmuch of this year, portion layoffs deed the concept's firm bureau successful Dallas successful February. CEO Artie Starrs announced his resignation successful aboriginal August.
Callaway acquired Topgolf successful March 2021 for $2.6 billion. In transportation with this merchantability and its related financing transactions, Topgolf Callaway Brands expects to person astir $770 cardinal successful nett proceeds taxable to acquisition terms adjustments.

"As we considered assorted alternatives to abstracted Topgolf, including a imaginable spinoff transaction, we received involvement from a fig of parties," Topgolf Callaway Brands president and main enforcement serviceman Chip Brewer said successful a statement. "After a robust process and a thorough valuation of a scope of alternatives, we judge this merchantability is the champion result for our shareholders, arsenic good arsenic our employees, and different stakeholders. This transaction is highly charismatic successful that it provides the institution with some important proceeds and important upside successful the continued maturation of Topgolf."

Brewer added that Leonard Green has a way grounds of occurrence investing “high-growth user companies.” Its portfolio includes Velvet Taco, Zaxbys, and more. 

“Today's announcement reflects the spot of the Topgolf concern and its agleam future, a aboriginal we proceed to judge successful and privation to beryllium portion of. We look guardant to partnering with LGP to further accelerate Topgolf's maturation and fiscal success,” helium said.

The institution archetypal announced plans to rotation disconnected the marque successful September 2024. The transaction was unanimously approved by the committee of directors and is expected to adjacent successful the archetypal 4th of 2026.