It has been reported that a Korean strategic investor (SI) is considering acquiring Callaway, one of the world’s top three golf brands.
According to investment banking (IB) industry sources on March 19, major shareholders such as BlackRock Advisors LLC have selected a sales manager and are pushing for the sale of their holdings and management rights.
Callaway reported revenue of US$4.29 billion last year, marking a 7.2 percent increase from the previous year. Its net profit was US$95 million. Currently listed on the New York Stock Exchange, its market capitalization stands at US$2.55 billion (approximately 3.4 trillion won).
The current reported selling price for Callaway is around 4 trillion won. With a market capitalization of 3.4 trillion won, significantly lower than its competitor Acushnet, which manufactures high-performance golf products including Titleist and has a market capitalization of US$3.92 billion, it is considered to be at a reasonable level, especially when factoring in the control premium. It is currently known that one Korean company has emerged as a potential acquirer.
If Callaway were to be acquired by a Korean company, then all three of the world’s top golf brands would become Korean-owned. Titleist came under the umbrella of FILA Korea in 2011, while TaylorMade was sold to the domestic private equity fund, Centroid Investment Partners, in 2021. Korean apparel company F&F participated as an SI.