Callaway Golf purchases TravisMathew for $125.5 million
Golf Biz

Callaway Golf purchases TravisMathew for $125.5 million

Callaway Golf has purchased apparel house TravisMathew for $125.5 million in an all-cash deal, marking another acquisition for the California-based company.

“We are very excited about this acquisition,” said Chip Brewer, Callaway Golf President and Chief Executive Officer in a release announcing the acquisition. “With its golf heritage, culture of product excellence and double-digit growth in the golf and lifestyle apparel business, TravisMathew is a great fit with our business, brands, culture and our strategy to grow in areas tangential to golf.

Founded in 2007, TravisMathew focuses on men's apparel for work, sport and leisure that is inspired by the culture and lifestyle of Southern California. Among those on the PGA Tour wearing TravisMathew are Keegan Bradley, Luke List, Colt Knost, Si Woo Kim, Chris Kirk, Stuart Appleby, Andres Gonzales and Patrick Cantlay.

The deal, which values TravisMathew at 11.8 times its projected 2017 full-year EBIDTA (Earnings Before Interest, Depreciation, Taxes and Amortization), or about $10.6 million on an estimated $55-60 million in net sales. Callaway intends to finance the transaction with cash on hand and borrowings from its asset-backed credit facilities.

The acquisition is subject to regulatory approval and is expected to close in the third quarter of 2017.

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