Dec 1st, 2018
Callaway pays $500million for Jack Wolfksin brand
The expansion continues
Words: Florida Dayton
Callaway Golf announced Friday it had entered into an agreement to acquire Jack Wolfskin, an outdoors apparel, footwear and equipment brand based in Germany. Callaway will pay almost $500 million.
The acquisition is expected to close in the first quarter of 2019. Callaway said it intends to finance the transaction with a $476 million term loan facility, led by BofA Merrill Lynch and JP Morgan Securities LLC.
“We are very excited to welcome the Jack Wolfskin brand into the Callaway portfolio,” Chip Brewer, president and CEO of Callaway, said in a press release.
“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.
“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.”
Callaway said the acquisition furthers its push into the active lifestyle category after its 2017 acquisitions of TravisMathew and Ogio. Jack Wolfskin had net sales of $380 million in the fiscal year ended Sept. 30, based on preliminary unaudited results provided by the company.
Callaway also said Jack Wolfskin provides more than 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 in Idstein, Germany.
“We are thrilled at the prospect of joining Callaway’s growing portfolio of premium, active-lifestyle brands,” Harris-Jensbach said. “Callaway has proven over many years that they are great innovators and brand builders. We see that they really invest in the brands they acquire and couldn’t be happier to be working with them.”