Topgolf Callaway announce separation four years after merger

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Topgolf Callaway Brands intends to pursue the separation of its business into two independent companies. The new Topgolf company would continue to be led by...

Wednesday that its board intends to pursue the separation of its business into two independent companies. At the time of the merger inThe company expects Topgolf, which specializes in golf-based entertainment, to be spun off into a stand-alone public company. It would retain its existing business with the exception of Toptracer, a ball-tracking technology service that would be part of Callaway, the equipment business for golf.

The new Topgolf would continue to be led by Artie Starrs, who is CEO of the company. Starrs, who joined Starrs in 2021, resides in Dallas,was seen as a way for the new company to draw in non-golfers to Topgolf’s entertainment venues and expose them to the broader game. On Wednesday, the company said the rationale for the separation included an enhanced strategic focus, optimized capital allocation, simplified operating structure and a distinct investment thesis for each company, according to an investor presentation.

While the company expects that a spin-off of Topgolf into a stand-alone public company is the most likely separation path, it will continue to evaluate other options for separation to maximize shareholder value. The company intends to spin off at least 80.1% of Topgolf.In connection with the separation, the two companies are expected to enter into ongoing, value-creating commercial agreements. For example, Callaway will still be the exclusive golf equipment partner for Topgolf.

 

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