Topgolf Callaway Brands Corp. announced that it has acquired certain assets of Dallas, Texas-based Invited, Inc., the largest owner and operator of private golf clubs in the US, related to its BigShots Golf business. The purchase price for the initial closing is approximately $29 million.
The acquisition adds the BigShots brand and specific locations to Topgolf Callaway’s portfolio in the US, expanding the company’s leadership position in off-course golf. The acquired BigShots portfolio includes four domestic venues, consisting of one owned and three franchised venues, as well as certain development rights for additional potential venues. Concurrent with this transaction, the company has agreed with Invited whereby Topgolf Callaway Brands’ products and merchandise will be offered at Invited’s more than 140 golf and country clubs.
“This acquisition will benefit all three segments of our business,” commented Chip Brewer, President and CEO of Topgolf Callaway Brands. “We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues, including the option to convert those to Toptracer technology in the near future, 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.” Brewer sees the deal as a good example of the synergies associated with his group’s brand portfolio. “It is also just the beginning of what’s possible when two great brands combine their resources and creativity to develop programs that foster growth and further fuel the momentum in our game.”
BigShots Golf was founded in 2013 and acquired in 2018 by Invited. The BigShots Golf concept aims to offer other entertainment besides golf, such as food, virtual golf, mini-golf, firepits, live music and yard games, to diversify the game of golf and appeal to players of all skill levels.
Topgolf Callaway expects the acquisition to be nominally accretive in the first year and to help scale economically thereafter. The transaction is considered both financially and strategically attractive to both parties.
