Callaway Golf Co. revealed on Tuesday that it plans to acquire the remainder of the driving range chain Topgolf Entertainment Group in a move worth approximately $2 billion. This will provide Callaway with a lucrative new source of income.
Callaway already owns 14% of Topgolf and decided to purchase the remainder of the company after noticing the positive impact that Topgolf’s operations had on Callaway’s financial performance. Topgolf’s driving ranges, which offer food, drinks, and recreational activities for children, have proven to be effective at drawing in younger golfers.
Callaway shares rose 8.9% in late trading following the announcement of the deal. This provided some relief to shareholders, after Callaway shares had dropped 9% from the start of the year until Tuesday’s close.
Having generated a revenue of more than $1.7 billion in 2019, Callaway expects its revenue to rise to $2.8 billion following the deal. In addition, the company expects its annual revenue to climb to $3.2 billion by the end of 2022.
Callaway Golf Co. is most widely known for its innovative Big Bertha club designs along with its highly-esteemed golfing apparel, golf balls, and headwear.
