The merger between Callaway Golf and Topgolf is slated to be finalized in the first quarter of 2021, valuing Topgolf at approximately $2 billion. Prior to the merger, Topgolf had planned to go public at a potential value of $4 billion.
On path to profitability: Even during the height of the COVID-19 pandemic, Topgolf CEO Dolf Berle said the company is on track for all Topgolf venues to be profitable by the end of the year. Currently, most of the company’s 63 operational venues are running at 80% to 85% same-venue sales compared to pre-pandemic times.
Now with a capital infusion from the merger, the plan is:
- Eight to 10 company-owned new U.S. venues per year.
- Room for 200 more U.S. locations.
- Room for 250 more international locations.
Callaway’s big quarter: Along with the Topgolf merger, equipment manufacturer Callaway capitalized on a golf surge in the third quarter, reporting a 12% year-over-year revenue increase to $476 million.
Prior to the pandemic, golf was struggling. This year? Golf rounds through the first nine months of 2020 were up 8.7% year-over-year, including a 26% jump in September. With more rounds being played, merchandise sales increased 42% year-over-year in the third quarter.