Topgolf was a big duff for Callaway. On Tuesday, the golf giant announced it had agreed to sell a 60% stake in the popular driving-range-slash-golf-simulator-slash-brewpub brand to LA-based private equity firm Leonard Green. The deal values Topgolf at $1.1 billion, roughly half of what Callaway paid for the brand in 2020. So how could something so beloved by bachelor parties be such a business bogey? SUBSCRIBE:  Receive more of our free The Daily Upside newsletter. READ ALSO: With AI Bases Loaded, Nvidia ...

Core Insights - Callaway is divesting control of Topgolf to private equity after nearly five years of challenges for investors, indicating a significant shift in strategy [1] - The valuation at which Topgolf is being sold is considerably lower than the price at which it was originally acquired, highlighting a decline in perceived value [1] Company Summary - Callaway has faced prolonged difficulties in the investment landscape, leading to the decision to sell Topgolf [1] - The sale reflects a broader trend in the industry where companies reassess their holdings and strategies in response to market conditions [1] Industry Summary - The transaction underscores the impact of private equity in the sports and entertainment sector, particularly in the context of changing consumer preferences and economic pressures [1] - The discounted valuation may signal a reevaluation of growth prospects within the industry, prompting other companies to consider similar divestitures [1]

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Topgolf Callaway Brands is selling a majority stake of its Topgolf brand to private equity firm Leonard Green for approximately $1.1 billion. The parent company will retain a 40% stake in the eatertainment concept while shifting most of its focus to its equipment and apparel business.This news comes as Topgolf has experienced a significant downturn as consumers pull back on their discretionary spending. Same-venue sales h ...

Leonard Green to acquire a 60% interest in Topgolf with Topgolf Callaway Brands retaining a 40% stake Topgolf Callaway Brands to receive ~$770 million in net proceeds , /PRNewswire/ -- Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands," "we," "our," "us") (NYSE: MODG) today announced that it has signed a definitive agreement to sell a 60% stake in its Topgolf and Toptracer business ("Topgolf") to private equity funds managed by Leonard Green & Partners, L.P. ("LGP"). The transaction ...