Topgolf Callaway Brands Corp. (NYSE: MODG) has purchased what it called “certain assets” from Invited, Inc. (formerly ClubCorp), the largest owner and operator of private golf clubs in the US, related to its BigShots Golf business. The $29 million acquisition – announced today after the close of Wall Street trading – adds the BigShots brand and what MODG said is “certain locations” to the company’s portfolio of U.S. venues.
The acquired BigShots’ portfolio includes four domestic golf and entertainment venues, comprised of one owned venue and three franchise venues, as well as certain other development rights for other potential venues. Concurrent with this transaction, MODG said it also entered into a preferred vendor agreement with Invited in which Topgolf Callaway Brands’ products and merchandise will be featured at Invited’s more than 140 golf and country clubs.
MODG said it expects the acquisition to be “nominally accretive” in its first year and contribute to scaling economics thereafter. TIn additon to Topgolf and Callaway Golf, the company owns the Ogio luggage brand, Travis Matthew apparel, Toptracer, and Jack Wolfskin apparel.
“This acquisition will benefit all three segments of our business,” said Topgolf Callaway Brands CEO/President Chip Brewer. “We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues, including the option to convert those to Toptracer technology in the near future, as well as further building out and strengthening our future venue pipeline and growing our partnership with an important golf equipment and apparel partner, Invited – all for the price of approximately one Topgolf venue.
“This deal is a great example of the synergies associated with our portfolio of brands and its leadership position in Modern Golf. It is also just the beginning of what’s possible when two great brands combine their resources and creativity to develop programs that foster growth and further fuel the momentum in our game.”
MODG stock cosed today at a 52-week low of 11.59. Year-to-date, the stock has dropped approximately 38 percent.
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