Topgolf Callaway Brands said Tuesday (Nov. 18) that it sold a 60 percent stake in its Topgolf and Toptracer business to Los Angeles private equity firm Leonard Green & Partners in a deal valued at $1.1 billion.
Upon close expected in the first quarter of 2026 pending regulatory approval, the company plans to change its name to Callaway Golf Co. and change its NYSE ticker symbol to “CALY.”
The sale of the stake will generate approximately $770 million for Topgolf Callaway.
Callaway Golf bought Topgolf Entertainment Group in one of the top deals during the height of the pandemic for about $2 billion, plus $500 million in debt.
“As we considered various alternatives to separate Topgolf, including a potential spin-off transaction, we received interest from a number of parties,” said Chip Brewer, president and CEO of Topgolf Callaway Brands, in a news release. “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. This transaction is highly attractive in that it provides the Company with both significant proceeds and substantial upside in the continued growth of Topgolf.”
Topgolf’s vice president of legal is Jon Olsen, who has been with the company for almost nine years. He joined the company in April 2017 as senior counsel after a couple of years in Dentons’ REIT practice group in Dallas. Prior to that, he was associate in Locke Lord’s Dallas office for a year-and-a-half.
Outside counsel for Topgolf was Latham & Watkins, led by San Diego partners Craig Garner and Kevin Reyes and Los Angeles partner David Zaheer, with associates Dylan Towns, Zach Kobayashi and Shelby Harrison.
Its financial advisors were Goldman Sachs and Centerview Partners.
Leonard Green & Partners was represented by Ropes & Gray. Moelis & Co. is the PE firm’s financial advisor.
The Ropes & Gray team includes partners Chau Le and Jay Freedman from the firms’ offices in San Francisco and Silicon Valley. Other Ropes & Gray California lawyers include Emily Karlberg and Jeff Battle. Nine attorneys from the firm’s Boston office advised on the deal including, Merry Sheehan, Erica Han, Kyle Higley, Pamela Glazier, Michael Mendel, Zak Goodwin, Patrick Welsh, Steven Levick and Peter Alpert. In New York, Jeremy Zucker, Richard Kidd and David Kaye advised the PE firm, as did Ruchit Patel and Edward Machin in London, and Tim Farrell from Chicago.
Financing counsel was provided by Sidley Austin Dallas partner Kristen Smith along with senior managing associate Shayona Schiely and associate Megan Bradley in Century City, and associates Scott Dawson and Shaobin Zheng in New York.
Jason Philyaw contributed to this report.