One of the world’s best known golf brands is selling a chain of driving ranges to refocus its business on apparel and equipment, a move meant to bring the company back to the gear that built its reputation long before the era of tech-enabled tee shots.
Carlsbad, California-based Topgolf Callaway Brands said it will sell a 60% stake in its Topgolf unit to Leonard Green & Partners in a $1.1 billion deal that values the chain at about half its 2021 value. Topgolf operates 111 locations around the globe.
Topgolf Callaway is to be called Callaway Golf Co. after the sale closes in the first quarter. Callaway expects to make $700 million from the transaction that it will reinvest into its Odyssey putters, Ogio accessories and TravisMathew apparel businesses, according to President and CEO Chip Brewer.
The deal to offload the chain of driving ranges “reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be part of,” Brewer said in a statement. “We look forward to partnering with Leonard Green to further accelerate Topgolf’s growth.” The company framed the move as stepping back from day-to-day ownership while still keeping a hand on the club.
Los Angeles-based Leonard Green & Partners, which manages about $75 billion in assets, previously acquired The Container Store in 2007 and took it public in 2017 before the home-organization chain filed for Chapter 11 bankruptcy protection in 2024. Leonard Green also acquired crafts and fabric seller Joann in 2007; that business filed for Chapter 11 bankruptcy in 2024 and closed all stores.
Topgolf occupies about 5.2 million square feet of commercial space, with suburban locations making up 70% of its footprint, according to CoStar Director of Market Analytics for Los Angeles Catherine Yeh. Sizes can range from 33,000-square-foot traditional Topgolf complexes to 2,000-square-foot so-called Topgolf Swing Suites in hotels and mixed-use properties.
High-tech putting
Topgolf started in the United Kingdom in the early 2000s as a tech-enhanced driving range dreamed up by two brothers who wanted a more social, gamified way to practice golf.
Callaway invested in Topgolf in 2006 and acquired the remaining stake in 2021 in a $2 billion deal, aiming to leverage its tech-driven ranges to attract younger, more casual players and expand beyond the sport’s traditional audience.
By then, Topgolf had grown into an international chain with more than 70 venues and had become one of the most recognizable leisure brands in golf.
Brewer called it a “transformational merger” at the time, saying, “Callaway and Topgolf are just better together."
“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,” he added.
But sales slowed as those casual golfers pulled back, and the combined company’s shares have fallen about 65% since the merger.
In August 2024, Topgolf Callaway announced plans to split into two companies and explore strategic options for Topgolf.
Adding more units
Topgolf had a solid third quarter that ended Sept. 30, with the segment’s revenue climbing to $472 million, up $19 million from last year, thanks in part to three new venues and a modest 1% bump in same-venue sales. That increase beat Wall Street expectations because of better traffic, driven partly by lower prices.
Even so, Topgolf Callaway Brands said it expects full-year 2025 Topgolf same-venue sales will be down a few percentage points from last year, signaling continued caution.
Boasting 15 venues, Texas stands out as the state with the most Topgolf locations, making up 14% of the chain’s real estate. It also has a handful of units in Asia, the Middle East, Canada and the U.K., according to CoStar data.
And the pipeline keeps growing. Topgolf opened its 111th venue in Woodbury, Minnesota, on Oct. 30.
The three-level site features 102 climate-controlled bays; proprietary technology that tracks each shot’s flight path, distance and accuracy in real time; and a mix of food and entertainment aimed at keeping the concept accessible and social.
Construction is also underway on a two-level venue in Monona, Wisconsin, 8 miles east of Madison, that is scheduled to open in the fall of 2026.