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Callaway buy Topgolf

On Tuesday, Callaway and Topgolf would be merging, with Callaway agreeing to buy the remaining stake in the driving range entertainment business in an all-stock deal.

Callaway, which first invested in Topgolf in 2006, already owned 14% of the company. The terms of the merger imply Topgolf’s equity value at approximately $2 billion.

what does it mean for the future of both companies? Callaway CEO Chip Brewer and Topgolf CEO Dolf Berle sat down with on Wednesday to lay out a more complete vision.

The following interview has been edited lightly for clarity as per :

Dylan Dethier, My first question is simple but elemental. What did Callaway see in this deal? What is Topgolf doing right that you guys wanted in on?

Chip Brewer, Callaway CEO: In short, Dylan, Topgolf is the best thing that happened to golf since Tiger Woods. It’s transforming the game. And it’s going to be the biggest source of growth for our industry.

It’s accessible fun. It fits with the times. It’s also a great business concept. And we’ve also been an investor since 2006; I’ve been on the board since 2012, so I’ve had a ringside seat as this business has grown and developed.

golfers play topgolf

When you look at the two businesses, they just really fit well together. Callaway is an iconic brand. We’ve been around now for a long, long time and we’re a global leader in the golf equipment market. We have a strong relationship with consumers globally. And Topgolf is creating new golfers, but they’re also entertaining existing golfers — half the visitors that go to Topgolf venues are already golfers themselves. So the access and the reach and the added growth and value that we think we can great through that consumer overlap and the consumption growth.


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