US-based sporting goods company Callaway Golf’s subsidiary in Japan has purchased the remaining 48% stake in Callaway Apparel.
Headquartered in Tokyo, Callaway Apparel is a joint venture (JV) between Callaway and its partner TSI Groove & Sports. It was established on 1 July 2016.
Callaway owned 52% of the JV and TSI owned the remaining 48%. The JV designs, manufactures and sells Callaway branded apparel, footwear, and headwear in the country.
The sporting goods company acquired the remaining 48% interest for JPY2bn ($18m), which values the company at approximately nine times projected EBITDA of this year.
As of 1 June this year, the Japanese subsidiary owns 100% of Callaway Apparel.
Callaway Golf president and CEO Chip Brewer said: “We have a great relationship with TSI Groove & Sports, but acquiring full ownership of this business provides our Asia team with a platform and the flexibility to support a fully integrated, multi-branded soft goods business in Asia.
“This acquisition is consistent with our strategy to accelerate growth in our soft-goods business across brands and geographies.”
The sporting goods firm also noted that its prior financial guidance for this year will not be affected by this transaction.
Callaway Golf signed an agreement to acquire Jack Wolfskin, a German manufacturer and retailer of outdoor footwear and equipment, for $476m, in December last year.
The company currently owns a range of global brands, such as Callaway Golf, Odyssey, OGIO, TravisMathew and Jack Wolfskin.