Carlsbad-based Callaway Golf Co. announced Monday it has completed the acquisition of the golf and lifestyle apparel company TravisMathew LLC for $125.5 million in an all-cash transaction, subject to a working capital adjustment.
TravisMathew, which will continue to operate out of its Huntington Beach headquarters, has its roots in golf but has since added other lines of clothing and accessories.
“We believe TravisMathew fits well with our business, brand and culture and aligns with our strategy of developing growth in areas tangential to the golf equipment business,” said Chip Brewer, Callaway’s president and CEO. “We have identified potential synergies in operations and distribution, as well as growth opportunities in the golf channels and international regions.”
Callaway said TravisMathew’s net sales for the full year of 2017 were estimated to be $55-60 million, with around $15 million in sales added to Callaway’s second half financial results.
The acquisition is expected to dilute Callaway’s earning per share by 4 cents this year, but add some next year, according to the company.
—City News Service