Jackson Reid
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment, including clubs, balls, bags, gloves, and caps. The company was founded by former Burlington Industries textile president, Ely Callaway Jr., in 1982. In 2021, Callaway Golf Company completed a merger with Topgolf International, Inc. to create an unrivaled tech-enabled golf company delivering leading golf equipment, apparel, and entertainment. Following the merger, the combined company, headquartered in Carlsbad, California, is now owned by shareholders of both the former Callaway Golf Company and Topgolf International, Inc.
| Characteristics | Values |
|---|---|
| Company Name | Topgolf Callaway Brands Corp. |
| Type of Company | American global sports equipment manufacturing company |
| Year Founded | 1982 |
| Founder | Ely Callaway Jr. |
| Headquarters | Carlsbad, California |
| Brands | Callaway, Odyssey, Toulon Design, OGIO, TravisMathew |
| Products | Golf clubs, balls, bags, gloves, caps, clothing |
| Marketing | Products marketed in more than 70 countries worldwide |
| Sales | Sales in excess of $3 billion |
| Merger | Completed merger with Topgolf International, Inc. in 2021 |
| Shareholders | BlackRock, Providence Equity, Carolina Hurricanes owner Thomas Dundon |
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What You'll Learn
Callaway Golf Company's merger with Topgolf
Callaway Golf Company is an American global sports equipment manufacturing company that was founded in 1982 by Ely Callaway Jr., an avid golfer and former Burlington Industries textile president. The company designs, manufactures, markets, and sells golf equipment, including clubs, balls, bags, gloves, and caps.
On March 8, 2021, Callaway Golf Company and Topgolf International, Inc. ("Topgolf") announced that they had completed their previously announced merger, following approval by shareholders of both companies. The merger created an unrivalled, tech-enabled golf company delivering leading golf equipment, apparel, and entertainment.
Topgolf is a leading tech-enabled golf entertainment business with innovative platforms, including open-air venues, Toptracer technology, and a media platform. The merger allowed Topgolf to build upon its rapid growth, expand its community reach, and advance its mission of making golf more inclusive and accessible.
Under the terms of the merger agreement, Callaway issued approximately 90 million shares of its common stock to Topgolf shareholders, excluding Callaway, which previously held approximately 14% of Topgolf's outstanding shares. Post-merger, Callaway shareholders owned approximately 51.3%, while former Topgolf shareholders (excluding Callaway) owned about 48.7% of the combined company's outstanding shares. The combined company's Board of Directors consisted of 13 directors, including three new directors appointed by Topgolf shareholders.
In connection with the merger, Callaway granted 189 Topgolf employees inducement performance stock unit ("PSU") and restricted stock unit ("RSU") awards under its 2021 Employment Inducement Plan. The company, now known as Topgolf Callaway Brands, reported that Topgolf contributed 39% of its total revenue in 2022, amounting to over $1.5 billion.
In September 2024, Topgolf Callaway announced that it would split into two separate companies in the second half of 2025, with Callaway focusing on golf equipment and clothing, and Topgolf continuing with golf-themed dining and entertainment venues. Despite the split, Callaway will retain a 19.9% ownership stake in Topgolf.
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Callaway Golf Company's history
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment, including clubs, balls, bags, gloves, and caps. The company was founded by former Burlington Industries textile president, Ely Callaway Jr., in 1982. Callaway was an avid golfer and had previously been successful in the textile and wine industries. After selling his winery in 1981 for a $9 million profit, he bought a 50% stake in the Hickory Sticks USA golf company, a club company that produced shafts with steel cores and hickory coverings, for $400,000 in 1982. The company was then renamed Callaway Hickory Stick USA. In 1983, Callaway became the company's president and moved its headquarters to Carlsbad, California, where he sold clubs out of his Cadillac. In 1985, the company hired Bruce Parker as head of sales, who later became the company's Chief Merchant and was responsible for sales in excess of $3 billion.
In 1986, Callaway hired a billiard cue designer, Richard C. Helmstetter, as a consultant. Helmstetter was named chief club designer that same year and introduced computer-controlled manufacturing machines. With his help, the company developed the original Big Bertha driver using large-volume (190cc) steel clubheads. The Big Bertha driver grew to 290 cc in 1997 and drove Callaway to the top of the industry in the early 1990s. In 1988, the company rebranded itself to Callaway Golf and debuted its S2H2 core technology. In 1990, Callaway's clubs gained more publicity as Senior PGA Tour players began to use them. In 1991, the company launched the Big Bertha driver, which saw success almost immediately as PGA professional Mark Brooks won twice with the club in its first year.
In 1995, Callaway Golf became the world's biggest seller of irons and woods. Following this success, the company decided to form its golf ball division in 1996. That year, Callaway announced the development of a new golf ball, investing $170 million in research and development, and construction of a 225,000-square-foot production facility. In 1997, the company expanded its line of putters by acquiring Odyssey Sports for $130 million and introduced its tungsten technology. In 1998, Callaway once again became president and CEO of the company, but he died of pancreatic cancer on July 5, 2001. In 2001, Ron Drapeau became the new CEO and president, and in 2002, the company introduced their carbon-fiber technology and Callaway Golf Forged Wedges, constructed from carbon steel with modified U-grooved faces. In 2016, Callaway acquired Toulon Design, a putter brand that combines premium materials and craftsmanship with advanced performance technology. In 2021, the company purchased Topgolf and thus also operates a chain of golf-related amusement and events centers.
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Callaway Golf Company's products
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment. The company was founded by Ely Callaway Jr. in 1982 and is based in Carlsbad, California. Callaway is the world's largest manufacturer of golf clubs.
Callaway's product offerings include golf clubs, balls, bags, gloves, caps, and other accessories. They have also developed innovative products such as easy-to-hit metalwoods and irons that help golfers hit longer and straighter shots, high-spinning wedges, and putters that improve accuracy. The company has a long history of introducing groundbreaking products, such as the iconic Big Bertha driver, which propelled Callaway to the top of the industry in the early 1990s.
In terms of golf balls, Callaway has invested significant resources into research and development, constructing a state-of-the-art production facility, and utilizing advanced engineering techniques to create the Rule 35 ball, which offers a combination of distance, control, spin, feel, and durability.
Callaway has also expanded its brand portfolio over the years. In 1997, they acquired the "Toulon Design" and ""Odyssey" putter brands, adding to their expertise in putter design and technology. Odyssey putters are widely used by professional golfers and have contributed to numerous tournament wins. In 2016, Callaway acquired OGIO, a leading bag brand known for its innovative designs and unique styling, and TravisMathew, a California-based lifestyle and golf apparel brand.
In 2021, Callaway purchased Topgolf, diversifying into golf-related amusement and event centers. The company plans to split into two separate entities in the second half of 2025, with Callaway focusing solely on golf equipment and clothing.
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Callaway Golf Company's shareholders
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment, including clubs, balls, bags, gloves, and caps. The company was founded by former Burlington Industries textile president, Ely Callaway Jr., in 1982.
Callaway has five powerful brands under its umbrella: Callaway, Odyssey, Toulon Design, OGIO, and TravisMathew. Odyssey is the #1 Putter in Golf, a title it has retained by outselling all other brands year after year. Toulon Design, acquired in 2016, specializes in putters that combine premium materials and craftsmanship with advanced performance technology. OGIO is a leading golf bag brand, while TravisMathew is a progressive men's sportswear and accessories brand.
In March 2021, Callaway Golf Company completed a merger with Topgolf International, Inc., following approval by shareholders of both companies. The merger created an unrivaled tech-enabled golf company, delivering leading golf equipment, apparel, and entertainment. Topgolf is a leading tech-enabled golf entertainment business with groundbreaking open-air venues and revolutionary Toptracer technology. The merger has allowed both companies to accelerate growth and create competitive advantages, thus increasing shareholder value.
The combined company's Board of Directors consists of 13 directors, including three new directors appointed by Topgolf shareholders. Chip Brewer leads the combined company as President and Chief Executive Officer, with Dolf Berle leading the Topgolf business through a transition period. John Lundgren serves as Chairman of the Board, while Erik Anderson is the Vice Chairman.
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Callaway Golf Company's future plans
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, and sells golf equipment, including clubs and balls, as well as accessories like bags, gloves, and caps. The company was founded in 1982 by former Burlington Industries textile president, Ely Callaway Jr., an avid golfer.
In 2024, Topgolf Callaway announced that it would split into two separate companies: Callaway and Topgolf. While Callaway will continue to sell golf equipment and clothing, Topgolf will focus on dining and entertainment venues with a golf theme. Despite the split, Callaway will retain a 19.9% ownership stake in Topgolf.
Looking at Callaway's past endeavours, we can make some predictions about its future plans. Callaway has a history of acquiring and merging with other companies to expand its brand and product offerings. For example, in 1997, Callaway acquired and began marketing products under the "'Toulon Design' and "Odyssey" putter brands. In 2016, it acquired Toulon Design, a company specialising in putters that combine premium materials and advanced performance technology. Callaway also purchased Topgolf in 2021, allowing it to operate a chain of golf-related amusement and events centres.
Callaway has also shown a commitment to innovation and creating high-performance golf equipment. It has invested significant resources into research and development, such as investing $170 million in developing a new golf ball, the Rule 35, and constructing a state-of-the-art production facility. With the help of experts like Richard C. Helmstetter, the company's former chief club designer, Callaway has introduced iconic products like the Big Bertha driver, which drove the company to the top of the industry in the early 1990s.
Moving forward, Callaway is likely to continue its pursuit of innovation and market expansion. The company may seek out further acquisitions or mergers that complement its existing brand and product portfolio. It will probably maintain its focus on research and development, utilising advanced technology and materials to create high-performance golf equipment that caters to golfers of all skill levels.
Additionally, Callaway might explore opportunities to enhance its direct-to-consumer sales channels, including online sales, and further establish its presence in the golf entertainment and experience sector through its continued association with Topgolf. With its endorsement deals with leading professional golfers and a strong track record in tournament wins, Callaway is well-positioned to leverage these associations for future product development and marketing initiatives.
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Frequently asked questions
Callaway Golf Company, legally Topgolf Callaway Brands Corp., is owned by its founder Ely Callaway Jr. and its shareholders, which include BlackRock, Providence Equity, and Carolina Hurricanes owner Thomas Dundon.
Callaway Golf Company is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment, including clubs, balls, bags, gloves, and caps.
Callaway Golf Company was founded in 1982 by former Burlington Industries textile president, Ely Callaway Jr.
Ely Callaway Jr. bought half of Hickory Sticks USA in 1982 and the company was renamed "Callaway Hickory Stick USA". In 1983, he became the company's president and moved its headquarters to Carlsbad, California. In 1985, the company hired Bruce Parker as head of sales, who later became the Chief Merchant. In 1986, Callaway hired Richard C. Helmstetter, a billiard cue designer, as a consultant and chief club designer. With his help, the company developed the original Big Bertha driver. In 1992, Callaway Golf went public on the New York Stock Exchange with a market capitalization of $250 million. In 1996, Callaway announced the development of a new golf ball, and in 1997, the company reached a market capitalization of over $3 billion. In 2021, Callaway merged with Topgolf International, Inc. to create an unrivaled tech-enabled golf company.
Callaway Golf consists of 5 brands: Callaway, Odyssey, Toulon Design, OGIO, and TravisMathew. Odyssey is the #1 Putter in Golf and has been for many years. Toulon Design, acquired by Callaway in 2016, specializes in putters that combine premium materials and craftsmanship with advanced performance technology. OGIO is a leading golf bag brand, offering innovatively designed and uniquely styled sports, travel, and business bags. TravisMathew is a progressive men's sportswear and lifestyle brand that views golf, tennis, and fitness as part of an active and fun lifestyle.
