Topgolf Callaway Brands (NYSE: MODG) Announces Agreement to Sell Jack Wolfskin to ANTA Sports

Topgolf Callaway Brands Corp. (MODG) (“Topgolf Callaway Brands” or the “Company”) announced that it has entered into an agreement to sell its Jack Wolfskin business to ANTA Sports for a base price of $290 million in cash, subject to net working capital and other customary adjustments. The transaction is expected to close in the late second quarter or early third quarter of 2025 and is subject to customary closing conditions, including receipt of certain regulatory approvals.

“I am pleased to announce we have reached an agreement to sell the Jack Wolfskin business to ANTA Sports, a global leader in sports apparel and footwear,” commented Chip Brewer, President and CEO of Topgolf Callaway Brands. “This sale will allow us to increase our focus and optimize our resources on our core business. Importantly, the proceeds will further enhance our balance sheet and liquidity, reinforcing our financial flexibility ahead of our planned separation of Topgolf from our core operations. We believe ANTA Sports will be a good steward of the iconic Jack Wolfskin brand, and we thank our Jack Wolfskin employees who have worked diligently to right-size this business and prepare it for this next chapter.”

Although the Company is not updating its financial guidance at this time, embedded in its February 24, 2025, full year guidance was an estimate for its Jack Wolfskin business of approximately Euro 325 million in revenue and Euro 12 million of Adjusted EBITDA. Given the typical seasonality of the Jack Wolfskin business, this full year estimate is comprised of approximately (a) Euro 115 million in revenue and a loss of Euro 18 million of Adjusted EBITDA for the first half of 2025 and (b) Euro 210 million in revenue and Euro 30 millions of Adjusted EBITDA in the second half of 2025.