Callaway Golf acquires TravisMathew in all cash deal
Callaway Golf has announced it has completed the acquisition of men's sportswear brand TravisMathew for $125.5 million dollars in an all cash transaction.
TravisMathew is a Huntington Beach, CA-based men's sportswear brand. It was founded in 2007 and has a domestic distribution strategy of better department stores, high-end country clubs, resorts and its own branded retail stores. It focuses on Southern California culture and lifestyle.
While TravisMathew's heritage was in golf, its growth shows potential for additional lifestyle and accessories expansion. Net sales for 2017 are forecasted to be between $55 and $60 million.
Chip Brewer, President and Chief Executive Officer of Callaway Golf Company explained the strategy behind the acquisition. Brewer said they would focus on "synergies in operations and distribution" and on international growth.
Brewer said that TravisMathew fits well with Callaway's "business, brand and culture." He also shed light on the direction Callaway is looking to for its future. Brewer said that TravisMathew "aligns with our strategy of developing growth in areas tangential to the golf equipment business."
Callaway expects TravisMathew will contribute $15 million in sales for the second half of 2017 financial reporting.
TravisMathew will continue operations out of its Orange County headquarters.
Copyright © 2020 FashionNetwork.com All rights reserved.