Topgolf Callaway Brands to Sell Majority Stake in Topgolf for $1.1 Billion

Topgolf Callaway Brands announced Tuesday that it’s selling majority ownership in its Topgolf business for $1.1 billion to private equity firm Leonard Green & Partners.

Leonard Green will have a 60 percent stake while Topgolf Callaway Brands, which will receive $770 million in net proceeds, will retain 40 percent. The transaction was unanimously approved by the board of directors and is scheduled to close in Q1 2026. Once finalized, the company will change its name to Callaway Golf Company and update its ticker symbol to CALY.

“LGP is a leading private equity firm with a track record of success in investing in high-growth consumer companies and is an ideal partner for Topgolf in its next chapter,” Topgolf Callaway Brands CEO Chip Brewer said in a statement. “I am proud of the Topgolf team and all the hard work that has gone into driving the business forward over the last five years. Today’s announcement reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be part of. We look forward to partnering with LGP to further accelerate Topgolf’s growth and financial success.”

The move comes more than a year after Topgolf Callaway Brands announced plans to separate from Topgolf. Brewer said the company received several offers, but that he believes the Leonard Green transaction “is highly attractive in that it provides the Company with both significant proceeds and substantial upside in the continued growth of Topgolf.”

Topgolf’s same-store sales rose over 1 percent in Q3, backed by positive traffic; two-thirds of the traffic momentum came from repeat customers. It’s a big difference from the second quarter, when comps dropped 6 percent. Segment revenue came in at $472.2 million, an increase from $453.2 million in the year-ago period.

Brewer attributed the brand’s gains to continued consumer appeal—he noted during the earnings call that the chain ranks first among competitors for fun and atmosphere—and recent value initiatives like “Sunday Funday” and half-off play Monday through Thursday. Topgolf has also seen improved guest frequency thanks to the launch of summer fun passes. Given the strong results of these passes, the plan is to create a new subscription program called PlayMore. Another important note: venue EBITDA margins were over 33 percent in the third quarter—flat year-over-year even with the increase in value offers.

In terms of digital growth, the chain forged a partnership with Toast’s POS system, which has improved speed of service, labor efficiency, and spend per visit. The technology should be in more than half of venues by the end of 2025 and systemwide by the end of Q2. Also, during the fourth quarter, Topgolf will pilot online ordering capabilities for play and food.

Topgolf finished Q3 with 102 company-owned venues—98 in the U.S. and four in the U.K.—and eight internationally franchised outlets.

Because of the positive trends, Topgolf upped its 2025 revenue guidance from between $1.71 billion–$1.77 billion to between $1.77 billion–$1.79 billion and its adjusted EBITDA projections from between $265 million–$295 million to between $295 million–$305 million.

The Topgolf business is currently led by COO Erin Chamberlin, who stepped in as interim president after the departure of CEO Artie Starrs earlier this year.

Leonard Green, based in Los Angeles, was founded in 1989 and has over $75 billion of assets under management. The group has completed more than 150 investments in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, selective public equity, and debt positions. It’s investment portfolio features Zaxbys and Velvet Taco, among several other companies.