Callaway Golf Company to acquire German brand Jack Wolfskin in €418 million deal
US-based Callaway Golf Company has entered into an agreement to acquire German outdoor brand Jack Wolfskin for €418 million, or about $476 million. The purchase comes as part of the sports equipment company's continued push to grow its presence in the active lifestyle category.
The acquisition is set to close in the first quarter of 2019. In a press release, Callaway said it will finance the deal with a $476 million term loan facility led by BofA Merrill Lynch and JP Morgan Securities LLC.
The Jack Wolfskin deal follows the company's procurement of men's apparel company TravisMathew, as well as sport and travel bag brand Ogio, which were added to Callaway's brand portfolio in 2017.
Claiming over 3,000 points of sale across the globe including wholesale, company-owned retail and franchised retail stores, Jack Wolfskin offers a range of men's, women's and kid's outdoor apparel, footwear and equipment targeted at "active outdoor and urban outdoor customer categories." Given the brand's well-developed international presence, Callaway plans to gain major ground in Europe and beyond.
"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," said Chip Brewer, president and CEO of Callaway. "It also helps Callaway expand its presence in the high-growth, active lifestyle category."
Jack Wolfskin had net sales equivalent to $380 million in the fiscal year ended September 30 of 2018, according to preliminary unaudited results provided by the brand.
After the acquisition, Jack Wolfskin will continue to operate out of its headquarters located in Idstein, Germany.
Copyright © 2021 FashionNetwork.com All rights reserved.