Topgolf Callaway stock jumps as Topgolf unit may be sold to Leonard Green

Investing.com -- Topgolf Callaway Brands (NYSE:MODG) stock rose 4% Friday following a Wall Street Journal report that the company is in discussions to sell its Topgolf unit to private-equity firm Leonard Green.

The potential deal could value the recreational driving range business at approximately $1 billion, according to people familiar with the matter. Topgolf Callaway had a market value of nearly $2 billion as of Thursday’s market close.

Sources indicated that while the transaction could be finalized soon, there remains a possibility that the discussions may not result in a completed deal. The report suggests Los Angeles-based Leonard Green had previously acquired a small stake in Topgolf and has already provided feedback on the business to management.

Topgolf operates popular entertainment venues that combine driving ranges with food, drinks, and social activities. The unit has been a significant part of Callaway’s business since the companies merged in 2021.

The potential divestiture comes as Topgolf Callaway looks to streamline its operations in a challenging economic environment for leisure and entertainment businesses.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.