Carlsbad’s Topgolf Callaway Brands to split into 2 companies

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The proposed spinoff comes less than four years after Callaway and Topgolf merged in 2021.

Tait Nelson tees off on the 9th hole on top of the Western Metal Building at The Links, 9-hole golf course put on by Callaway Golf at Petco Park on Thursday, Jan. 12, 2023 in San Diego, CA. Topgolf Callaway Brands, which originated as Carlsbad-based golf equipment company Callaway, is splitting up the business less than four years after merging with Topgolf, the operator of golf entertainment venues.

“Callaway and Topgolf are just better together,” Callaway Chief Executive Chip Brewer said at the time. “Callaway’s leadership in the global golf equipment market and geographic diversity, combined with Topgolf’s revolutionary technology platform and access to golfers of all abilities, will allow both companies to accelerate growth and create competitive advantages.”

Last month, the company’s board and management team initiated a strategic review of Topgolf following disappointing stock performance and flat sales performance at its venues. This review resulted in the decision to separate the businesses, said John Lundgren, chairman of the board at Topgolf Callaway Brands in the announcement.

The plan is to spin off Topgolf into a separate public company, however, the company said it is still evaluating the best path to maximize shareholder value. Callaway will spin off at least 80.1 percent of its stake in Topgolf and maintain some shares in the company.

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