Callaway Sells Majority Stake in Topgolf

The brief and troubled marriage between golf equipment giant Callaway and the entertainment venue chain Topgolf is officially dissolving.

Callaway has agreed to sell a 60 percent majority stake in Topgolf to the Los Angeles private-equity firm Leonard Green & Partners (LGP), in a deal that values the Topgolf business at approximately $1.1 billion.

The sale, announced on Tuesday, brings an end to the “Topgolf Callaway Brands” entity, which was created with great fanfare during a full merger in 2020. That merger, which occurred amid a COVID-19-fueled surge in casual golf, had valued Topgolf at an estimated $2 billion.

Valuation Plunge Prompts Strategic Pivot

The decision to sell follows a dramatic downturn in shareholder value for the combined company. After reaching an all-time high of $37.29 per share in 2021, the stock ultimately dropped more than 70 percent, failing to meet the high expectations set by the initial merger.

Callaway CEO and President Chip Brewer had previously announced intentions last year to split the entity back into two separate public companies. The deal with LGP, which is expected to close in the first quarter of 2026, is an alternative path that will generate substantial capital for the core Callaway business.

“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,” said Chip Brewer in a statement. “This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf.”

Focus Returns to Core Golf Business

The transaction is projected to generate about $770 million in net proceeds for the remaining company. Following the sale, the parent company will revert its name to Callaway Golf Company and remain publicly traded on the New York Stock Exchange.

Leonard Green & Partners, which already held a minority stake in the combined entity, will take the reins of Topgolf as it continues its expansion of more than 100 venues across the United States.

Notably, Callaway will retain a 40 percent minority stake in Topgolf, a structure that allows the company to benefit from Topgolf’s future growth under new management while refocusing on its core golf equipment and apparel brands. Chip Brewer will continue to lead the newly streamlined Callaway Golf Company.