Carlsbad, California, United States: Topgolf Callaway Brands Corp has signed a definitive agreement to sell a 60% stake in its Topgolf and Toptracer business to private equity funds managed by Leonard Green & Partners (LGP).

The transaction values Topgolf at approximately US$1.1 billion. In connection with this sale and its related financing transactions, Topgolf Callaway Brands expects to receive approximately US$770 million in net proceeds (subject to purchase price adjustments).

Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands, said: “As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties.

“After a robust process and a thorough evaluation of a range of alternatives, we believe this sale is the best outcome for our shareholders, as well as our employees and other stakeholders. This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf.

“LGP is a leading private equity firm with a track record of success in investing in high-growth consumer companies and is an ideal partner for Topgolf in its next chapter.

“I am proud of the Topgolf team and all the hard work that has gone into driving the business forward over the last five years. This announcement reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be part of. We look forward to partnering with LGP to further accelerate Topgolf’s growth and financial success.

“Importantly, this transaction supports our strategy of focusing on our leading Golf Equipment & Active Lifestyle platform. Post-transaction, our on-going brand portfolio will consist of: Callaway, Odyssey, TravisMathew and Ogio. These businesses generated approximately US$2 billion in revenue over the last 12 months through Q3 2025.

“Furthermore, after the closing of this transaction, the on-going business will be well-capitalised, enabling us to continue to reinvest in our businesses, pay down debt and deliver a meaningful return of capital to shareholders via stock repurchases or other means. We will work with our Board of Directors to determine the specifics of this capital allocation strategy, as well as the optimal capital structure for our on-going business.”

Topgolf Callaway Brands expects the transaction, which was unanimously approved by its Board of Directors, to close in the first quarter of 2026. The transaction is subject to certain regulatory approvals and customary closing conditions, including the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is not subject to any financing conditions. LGP has obtained debt and equity commitments for the transaction.