Callaway Golf to Acquire Jack Wolfskin

Callaway Golf Company has entered into an agreement to acquire Jack Wolfskin for €418 million, or approximately $476 million assuming a 1.140 Euro to U.S. dollar conversion rate, subject to certain purchase price adjustments.  The acquisition furthers Callaway’s push into the active lifestyle category after its 2017 acquisitions of TravisMathew and Ogio.

Assuming a 1.140 Euro to US Dollar conversion rate, Jack Wolfskin had net sales of $380 million in the fiscal year ended September 30, 2018, based on preliminary unaudited results provided by Jack Wolfskin. Jack Wolfskin provides over 3,000 points of sale globally, including wholesale, company-owned retail and franchised retail stores. Post transaction, Jack Wolfskin will continue to operate out of its headquarters located in Idstein, Germany.

The $476 million purchase price values Jack Wolfskin at a multiple of approximately 12 times its fiscal 2018 adjusted EBITDA of $40 million. The acquisition is expected to close in the first quarter of 2019, subject to regulatory approvals and other customary closing conditions. Callaway intends to finance the transaction with a $476 million term loan facility, led by BofA Merrill Lynch and JP Morgan Securities LLC.

READ ALSO:   Polartec Collaborates with Backcountry, Flylow

“We are very excited to welcome the Jack Wolfskin brand into the Callaway portfolio,” commented Chip Brewer, President and Chief Executive Officer of Callaway. “Jack Wolfskin is a premium outdoor brand with tremendous international reach, being a leading brand in the European market and having a substantial presence in China. It also helps Callaway expand its presence in the high-growth, active lifestyle category.”

Mr. Brewer continued, “We are also very excited to work with Jack Wolfskin’s great leadership team, led by CEO Melody Harris-Jensbach, to maximize this brand’s growth potential.”

Leave a Reply