Callaway Golf has purchased Ogio International in an all-cash deal with $75.5 million, bringing on board the golf equipment and apparel line into the fold to bolster its non-club options.
"We are excited about Ogio becoming part of Callaway and believe this acquisition aligns well with our stated goal of strategically developing growth in tangential areas," said Callaway president and CEO Chip Brewer in a release announcing the deal.
"Furthermore, there is a robust strategic fit between the companies; both are strong brands with a sports heritage that share a passion for creating high-quality, performance-driven products. There is also significant overlap in our supply chains and go-to-market strategies, which should allow us to add value and create profitable growth."
Ogio makes golf bags and golf travel gear, including backpacks, hard and soft travel cases, as well golf apparel and other accessories. The company also makes bags and gear for other sports, including fitness training and other outdoor sports. They also make luggage and work baggage.
Callaway projects Ogio sales will be worth $10 million in annual EBIDTA (Earnings Before Interest, Depreciation, Taxes and Amorization) in 2017 and beyond. That means Callaway made the purchase at 7.6 times the EBIDTA projection. In 2017, the company expects Ogio to generate $45 million in revenue.