Topgolf to be acquired by private equity firm Leonard Green & Partners

Topgolf’s same-store sales have been moving in a positive direction this year. | Photo: Shutterstock.

Topgolf has a new owner again, but the parent company isn’t completely letting go.

Private equity firm Leonard Green & Partners LP on Tuesday said it has agreed to acquire a 60% stake in the social entertainment chain and its technology from Topgolf Callaway Brands Corp. In the deal, Topgolf is valued at about $1.1 billion.

Topgolf Callaway Brands—which will change its name to Callaway Golf Company and update its ticker symbol to CALY on the New York Stock Exchange— expects to receive about $770 million in net proceeds, subject to purchase price adjustments, with the sale and related financing transactions.

Carlsbad, California-based Topgolf Callaway bought the now-100-unit golf-themed eatertainment chain in 2020, at that point adding “Topgolf” to the parent company’s name. But within four years, the parent began speaking publicly about a potential spinoff.

Earlier this year, the Topgolf chain’s former CEO Artie Starrs stepped down to take another position in a move that, at the time, was expected to delay the planned spinoff until sometime next year. Topgolf COO Erin Chamberlin is serving as interim president while the search for a replacement is underway. 

Chip Brewer, Topgolf Callaway’s president and CEO, said in a statement that the company received interest from a number of parties for the brand. 

 “After a robust process and a thorough evaluation of a range of alternatives, we believe this sale is the best outcome for our shareholders, as well as our employees and other stakeholders,” he said. “This transaction is highly attractive in that it provides the company with both significant proceeds and substantial upside in the continued growth of Topgolf.” 

He added that the deal “reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be a part of.”

Going forward, Topgolf Callaway will focus on its Golf Equipment & Active Lifestyle platform, which includes the Callaway, Odyssey, TravisMathew and Ogio brands.

Like many brands in the social entertainment space, Topgolf has struggled with weak sales in recent years as consumers cut back on spending.

In March, the parent company announced layoffs at the brand’s home base in Dallas, which was described at the time as preparation for the separation.

But efforts to improve the value proposition at Topgolf have been paying off. In the third quarter, the chain’s same-store sales were up more than 1%, which Brewer said was driven by positive momentum in traffic. At smaller one- to two-bay locations, which make up 80% of revenues, traffic was up for the quarter in the high teens, and same-store sales were up 2.4%, Brewer said in the company’s Nov. 6 earnings report, according to a transcript from AlphaSense. 

He credited value initiatives like Sunday Funday and Half-Off Golf Monday-Thursday, which were implemented mid year. Coming soon is a subscription program called PlayMore.

Leonard Green is a familiar name in the restaurant world. The firm is an investor in both Velvet Taco and Zaxbys.

The deal was approved by Topgolf Callaway’s board of directors and is expected to close in the first quarter of 2026.

Topgolf Callaway was advised by Goldman Sachs & Co. LLC and Centerview Partners with Latham & Watkins LLP serving as legal counsel.

Moelis & Company LLC is acting as financial advisor to Leonard Green, with Ropes & Gray LLP serving as corporate legal counsel and Sidley Austin LLP serving as financial counsel.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Lisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts.

View All Articles by This Author