As the market for golf experiences heats up,Topgolf Callaway Brands Corp. is doubling down on its stake in the space.
The Carlsbad, California-based company announced that it acquired the BigShots Golf brand and certain locations of its Topgolf-esque product for $29 million from BigShots parent company Invited, Inc. — the largest operator of private golf clubs in the United States.
Topgolf Callaway will immediately take on four of BigShots’ U.S. locations — one owned and three franchise venues — and receive development rights for other potential locations.
As part of the deal, Topgolf Callaway will become the preferred vendor for Invited, meaning its products and merchandise will be featured at Invited’s more than 140 locations.
“We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues… as well as further building out and strengthening our future venue pipeline and growing our partnership with an important golf equipment and apparel partner, Invited — all for the price of approximately one Topgolf venue,” Topgolf Callaway Brands CEO Chip Brewer said.
Topgolf Callaway adds that the acquisition will be “nominally accretive in its first year and contribute to scaling economics thereafter.”
The company could be feeling the pressure following its lowering of sales expectations in May — and as more and more parties invest in the golf experience realm.
Last week, an investment group led by pro golfer Bryson DeChambeau announced the launch of its Topgolf competitor, UnderPar Life. Pros TigerWoods and Rory McIlroy are also invested in golf experience brands.