Topgolf Callaway Brands will sell a 60 per cent stake in its Topgolf and Toptracer operations to private equity firm Leonard Green & Partners (LGP) in a deal valued at about  $1.1 billion.

The company expects to receive roughly $770 million in net proceeds once the sale and related financing transactions are completed, subject to adjustments.

Topgolf Callaway CEO Chip Brewer said the company checked several options to separate the Topgolf business, including a possible spin-off, before selecting LGP. 

“After a robust process and a thorough evaluation of a range of alternatives, we believe this sale is the best outcome for our shareholders, as well as our employees and other stakeholders,” he said. 

Brewer described LGP as “an ideal partner” with a strong record in high-growth consumer brands.

“Today’s announcement reflects the strength of the Topgolf business and its bright future, a future we continue to believe in and want to be part of,” he added.

Following the transaction, the company says it will sharpen its focus on its core golf and active lifestyle businesses: Callaway, Odyssey, TravisMathew and Ogio.

The deal, unanimously approved by the board, is expected to close in the first quarter of next year pending regulatory approval and customary closing conditions.

LGP has secured both debt and equity commitments, and the transaction is not subject to financing contingencies.

Once completed, the company will rebrand as Callaway Golf Company and adopt a new NYSE ticker symbol, CALY. Its stock will continue trading on the exchange without interruption.