Topgolf Callaway Brands Corp. announced the completion of its sale of a 60 percent stake in its Topgolf and Toptracer businesses to Leonard Green & Partners. In connection with the closing, the company repaid $1 billion of outstanding borrowings. It plans to change its corporate name back to Callaway Golf Company on January 15.
Topgolf Callaway initially announced the agreement to sell Topgolf to affiliates of Leonard Green on November 18.
The transaction values Topgolf at approximately $1.1 billion. In connection with the sale and related financing transactions, Topgolf Callaway Brands received approximately $800 million in cash proceeds, net of working capital adjustments and transaction expenses (and subject to further customary purchase price adjustments).
In connection with the closing, the company also repaid $1 billion of outstanding borrowings under its term loan B facility.
Immediately following the repayment, the company had approximately $480 million in outstanding debt (including approximately $258 million in convertible notes and approximately $166 million in term debt) and unrestricted cash and cash equivalents of approximately $680 million. The company plans to use a portion of the transaction proceeds received to repay its convertible notes, which are scheduled to mature in May 2026.
The company’s Board of Directors (“Board”) has also authorized the company to repurchase up to $200 million of the company’s common stock in open market or private transactions.
“I am very pleased to report today that we have completed the sale of a majority interest in Topgolf,” commented Chip Brewer, president and chief executive officer of Topgolf Callaway Brands. “This transaction positions both companies as separate, well-capitalized, focused, pure play businesses that should thrive in their respective spaces. It also maintains the strong marketing synergies via a strategic marketing partnership and provides the opportunity for future value creation through our 40 percent retained stake in Topgolf. Further, with our repayment of $1 billion in debt, and our Board’s approval of a new share repurchase program, we are not only significantly reducing our leverage but also reinforcing our commitment to delivering long-term value for our shareholders.”
In addition, the company announced its plans to change its corporate name back to “Callaway Golf Company.” The company expects the corporate name change to be effective on or about January 15, 2026. In connection with the change, effective on or about January 16, 2026, the company also intends to change its ticker symbol on the New York Stock Exchange from “MODG” to “CALY.”
The company’s portfolio now consists of Callaway Golf, Odyssey, TravisMathew, and OGIO.
Image courtesy Topgolf
