Browsing Golf Industry NewsVIEW ALL

Callaway Golf Completes Jack Wolfskin Acquisition

POSTED ON January 5, 2019 @ 6:17 pm

Callaway Golf Company announced that it has completed the previously announced acquisition of Jack Wolfskin for €418 million, or approximately $476 million assuming a 1.140 Euro to US Dollar conversion rate, subject to a working capital adjustment.

Jack Wolfskin is an international, premium outdoor apparel, footwear and equipment brand. The company designs premium products targeted at the active outdoor and urban outdoor customer categories. The acquisition furthers Callaway’s push into the active lifestyle category after its successful 2017 acquisitions of TravisMathew and Ogio. Post-acquisition, Jack Wolfskin will continue to operate out of its Idstein, Germany headquarters.

“We are very excited to have completed this acquisition and have the Jack Wolfskin brand as part of the Callaway portfolio,” commented Chip Brewer, President and Chief Executive Officer of Callaway. “We believe Jack Wolfskin fits extremely well with our current brands and furthers our stated plan of strategic investments in complementary areas. Jack Wolfskin provides an innovative product offering with long-term synergies to the existing soft goods portfolio. We look forward to partnering with the Jack Wolfskin management team to maximize this brand’s growth potential.”

“We are thrilled to be joining Callaway’s growing portfolio of premium, active lifestyle brands,” said Jack Wolfskin’s Chief Executive Officer Melody Harris-Jensbach. “The Callaway team has proven over many years that they are great innovators and brand builders. We are excited to have them invest in our brand and are eager to start working with them.”

Callaway financed the transaction with a $480 million Term Loan B facility, which was led by BofA Merrill Lynch and JP Morgan Securities LLC. The facility has a seven-year term, subject to certain prepayment rights, and bears interest at a rate of LIBOR plus 4.50 percent. The Term Loan B market weakened during the period the Company marketed the loan to investors and therefore the estimated annual financing costs will be approximately $0.05 per share higher than previously estimated. As a result, Callaway currently estimates that this transaction is expected to be approximately $0.11 per share dilutive for full year 2019 and slightly accretive in 2020, both on a non-GAAP basis, which excludes non-recurring transaction costs and non-cash purchase accounting adjustments. The Company intends to provide further guidance on a GAAP basis once it has completed its purchase accounting adjustments. Full year 2019 adjusted EBITDA, which excludes transaction costs and non-cash purchase accounting adjustments, is still estimated to be approximately $33 million for the Jack Wolfskin business. The Company remains excited about adding this premium brand to its portfolio and the strategic benefits and long-term potential this acquisition provides.

Latham & Watkins LLP acted as legal counsel to Callaway for the acquisition and Gibson Dunn & Crutcher acted as legal counsel to Callaway for the Term Loan B facility. JP Morgan Securities LLC acted as exclusive financial advisor to Callaway for the acquisition. Kirkland & Ellis International LLP acted as legal counsel and Houlihan Lokey as exclusive financial advisor to Outdoor Holdings SCA – the holding company of Jack Wolfskin. THM Partners acted as director of and advisor to the Jack Wolfskin Group.

Source: SGBMedia

Comments are closed.


CLICK HERE TO Sign Up for the GIC Newsletter for all the latest Industry News.

Grow the Game Central Golf Recruitment Central Golf Marketing Central

Brisbane GC leading the way to gender equality...

The Brisbane Golf Club has become one of...

Incredible membership growth at Ranfurlie...

Now in the midst of Membership Subscriptions for...

Empowering Women In Golf Through Equality...

By golfscape.com Role models, race, and gender. Felicity...

Queensland proshop owner stays afloat with business interruption ...

Not totally surprising at this time of the year, the weather around the country has been a tad bit on the extreme...

Revenue Growth: The surprizing book of green fees...

  Chapter One – The Club Director Every club director requires their club to be profitable.  Every club director should also hold...

Walkinshaw Sports Acquires Linkz Marketing in New Zealand...

Walkinshaw Sports Pty Ltd announce that they have acquired the wholesale golf business of Linkz Marketing as part of their ongoing commitment...

Loch Lomond Whiskies partner with GA...

Loch Lomond Whiskies and Golf Australia have signed a new partnership to give golfers and whisky fans more opportunities to enjoy the...

Golf and health week to highlight how the sport helps wellbeing...

A dedicated campaign to raise awareness of the health benefits of golf for people of all ages and abilities...

Global momentum continues for MPower MSL’s golf platform to del...

MPower MSL (ASX:MPW) (MSL) announced today that the Swiss Golf Federation has selected MSL’s World Handicap System solution to...

Mike Orloff to speak at India Golf & Turf Expo 2019...

Organized by the Golf Industry Association (GIA), India Golf Expo brings together India’s golfing fraternity of India and experts...

Points and Prizes on Offer to Delegates at Pattaya Conference...

Multiple benefits will be on offer to attendees at next week’s conference on Sustainable Turfgrass Management in Asia. Held...

Golf Surprize wants to help prevent golf clubs from racing to the...

    By Anthony Robinson CEO – Golf Surprize Online golf tee times and barter systems are growing in...

Greg Norman Releases First-Ever 100% Wagyu Beef Jerky...

Greg Norman and Caribe Producers LLC. announce the release of Greg Norman Signature Wagyu Beef Jerky – the first...