Topgolf Callaway Brands Corp. reported that the company purchased certain assets from Invited, Inc., the largest owner and operator of private golf clubs in the U.S., related to its BigShots Golf business.
The acquisition adds the BigShots brand and certain locations to the company’s portfolio of U.S. venues, expanding its position in off-course golf. Topgolf has 84 U.S. locations.
The acquired BigShots’ portfolio includes four U.S. venues, comprised of one company-owned venue and three franchises, as well as development rights for potential venues.
Concurrent with the transaction, the company also entered into a Preferred Vendor Agreement with Invited, Inc., in which Topgolf Callaway Brands’ products and merchandise are featured at Invited’s over 140 golf and country clubs.
The purchase price for the initial closing is approximately $29 million. The company expects the acquisition to be nominally accretive in its first year and contribute to scaling economics thereafter. Topgolf reported that the transaction is viewed from both sides of the deal as financially and strategically attractive.
Chip Brewer, president and CEO of Topgolf Callaway Brands, said, “This acquisition will benefit all three segments of our business. We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues, including the option to convert those to Toptracer technology in the near future, as well as further building out and strengthening our future venue pipeline and growing our partnership with an important golf equipment and apparel partner, Invited, all for the price of approximately one Topgolf venue. This deal is a great example of the synergies associated with our portfolio of brands and its leadership position in Modern Golf. It is also just the beginning of what’s possible when two great brands combine their resources and creativity to develop programs that foster growth and further fuel the momentum in our game.”
Topgolf Callaway’s brands include Topgolf, Callaway Golf, TravisMathew, Toptracer, Odyssey, OGIO, Jack Wolfskin, and World Golf Tour (WGT).
Photo courtesy BigShots Golf
