Jack Wolfskin purchased by Callaway Golf Company
Mark Lane | 30th November 2018
CALIFORNIA – Callaway Golf Company is set to acquire German outdoor brand Jack Wolfskin for US$476m. 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 which designs 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 thrilled at the prospect of joining Callaway’s growing portfolio of premium, active lifestyle brands,” added Jack Wolfskin’s chief executive officer Melody 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 had net sales of US$380m in the fiscal year ended September 30, 2018. The business will continue to operate out of its headquarters located in Idstein, Germany.
The US$476m purchase price values Jack Wolfskin at a multiple of approximately 12 times its fiscal 2018 adjusted EBITDA of US$40m.
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 US$476m term loan facility, led by BofA Merrill Lynch and JP Morgan Securities LLC.
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