CALLAWAY GOLF COMPANY BUYS OUTDOOR APPAREL BRAND JACK WOLFSKIN
Callaway Golf Company has entered into an agreement to acquire Jack Wolfskin for €418 million, or approximately $476 million, subject to certain purchase price adjustments.
The acquisition furthers Callaway’s push into the active lifestyle category after its successful 2017 acquisitions of TravisMathew and Ogio. Jack Wolfskin is an international, premium outdoor apparel, footwear and equipment brand. The company designs premium products targeted at the active outdoor and urban outdoor customer categories.
“We are very excited to welcome the Jack Wolfskin brand into the Callaway portfolio,” said 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. 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.”
“We are thrilled at the prospect of joining Callaway’s growing portfolio of premium, active lifestyle brands,” added Harris-Jensbach. “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.”
Jack Wolfskin reported net sales of $380 million in the fiscal year ended September 30, 2018, based on preliminary unaudited results provided by the brand. Jack Wolfskin provides over 3,000 points of sale globally, including wholesale, company-owned retail and franchised retail stores. Post transaction, the brand will continue to operate out of its headquarters located in Idstein, Germany.
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.
