Callaway and Topgolf to Split and Scale Back Venue Expansion

[Sanjeev Advani]

Topgolf Callaway Brands is set to split into two independent companies, Callaway and Topgolf, by the second half of 2025. This move comes after a strategic review, three years after the merger of the two companies. It aims to streamline operations and improve financial performance.

Callaway, which leads the U.S. market in branded golf clubs and is second in branded golf balls, will focus on growing its equipment business, while Topgolf will continue expanding its entertainment venues. In 2024, Topgolf plans to reduce its venue pipeline to between four and six locations to free up cash for the spinoff. After the separation, Callaway will retain financial debt, while Topgolf will emerge as a debt-free entity.

CEO Chip Brewer emphasized Topgolf’s potential as a free cash flow-generating business with strong future prospects. Both companies expect to benefit from optimized capital allocation and simpler operations as they focus on their core strengths in the post-spinoff phase.