California-based Callaway Golf Co. has announced the purchase of sports and lifestyle apparel company TravisMathew LLC for $125.5 million. The deal is expected to close in the third quarter of this year. TravisMathew will continue to operate out of its Huntington Beach, CA, headquarters and its management team will remain intact.
“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,” said Chip Brewer, president and CEO of Callaway, in a statement. “This acquisition, once completed, is expected to be slightly accretive to earnings in 2018 and create significant value for our shareholders over the long-term. We look forward to working with the TravisMathew management team to maximize this brand’s growth potential.”
Founded by Travis Johnson, Travis Brasher and John Kruger in 2007, TravisMathew has grown from an exclusively golf clothes company to one that now offers tennis apparel and other lines. The company has retail stores in California and Arizona and sells clothing at Nordstrom, as well as at specialty golf stores and resorts. Callaway said TravisMathew’s 2017 sales are likely to be between $56 million and $60 million this year.
Callaway – which offers many products including golf equipment, hats and shirts through promo suppliers – recently reported second quarter sales of $305 million, a 25% year-over-year rise. Callaway also raised its full-year 2017 guidance and now expects sales of $980 million to $995 million. The TravisMathew deal is Callaway’s second acquisition outside of the traditional golf market. Earlier this year, Callaway bought backpack maker OGIO for $75.5 million.