Topgolf Callaway Brands is in discussions to sell its entertainment-driven driving-range unit Topgolf to private equity firm Leonard Green & Partners in a transaction that could value the business at around $1bn, according to a report by Reuters citing people familiar with the matter.
The talks mark a significant moment for the group, which formed in 2021 through the merger of golf-equipment maker Callaway Golf Company and Topgolf. Since then, the combined entity has seen its share value tumble by roughly 73% from post-merger highs, due to investor concerns.
The group had announced in September last year that it would look to split the firm into two separate companies.
Leonard Green has reportedly already shared feedback with the company’s management and business, according to a report by the Wall Street Journal. It currently has a minority stake in Topgolf, and manages $75bn in assets.
