Callaway Golf was founded in 1982 by Ely Reeves Callaway, Jr and is a household name in terms of golf brands. Their endorsers include the likes of the past two Open Champions in Ernie Els and Phil Mickelson as well as the King, Arnold Palmer and arguably the greatest female golfer of all time in Annika Sorenstam. However, sales for Callaway Golf has not been ideal the past few years and this may lead to a big change for the company!
According to a report from Bloomberg on Friday, Callaway Golf is currently trading “at a lower sales multiple than 89 percent of similar-sized North American leisure and sporting-goods producers.” What this means is that Callaway Golf may be susceptible to being bought out by either a fellow competitor or private equity firms! Nike was named as a potential suitor for Callaway Golf as its club business may benefit from Callaway’s market share. Just like Adams Golf and Ashworth were acquired by Taylormade Adidas, we don’t imagine consumers would notice a big change. But wouldn’t it be something if Nike had the world’s top three players in Tiger, Rory and Phil all under their umbrella?
Source: Bloomberg
