US-based sporting goods company Callaway Golf has signed an agreement to acquire Jack Wolfskin, a German manufacturer and retailer of outdoor footwear and equipment, for $476m.
Following the acquisitions of Travis Mathew and Ogio last year, Callaway has further pushed into the active lifestyle category with the latest acquisition.
Callaway president and chief executive officer Chip Brewer said: “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 also very excited to work with Jack Wolfskin’s great leadership team, led by CEO Melody Harris-Jensbach, to maximise this brand’s growth potential.”
Jack Wolfskin chief executive officer Melody Harris-Jensbach said: “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.”
In the fiscal year ended September 2018, Jack Wolfskin’s net sale had touched $380m based on preliminary unaudited results.
Jack Wolfskin targets the active and urban outdoor customer categories. It manufactures outdoor apparel, footwear and equipment, which are sold through over 3,000 points of sale globally, including wholesale, company-owned retail and franchisees.
Following the completion of the deal, Jack Wolfskin will operate from its headquarters in Germany.
The deal is expected to close in the first quarter of 2019, following receipt of regulatory approvals and adherence to other customary closing conditions.
Callaway plans to fund the deal through a $476m term loan facility, led by BofA Merrill Lynch and JP Morgan Securities.
Latham & Watkins is acting as legal counsel and JP Morgan Securities as exclusive financial advisor to Callaway.
Houlihan Lokey is an exclusive financial advisor to Outdoor Holdings, which is the holding company of Jack Wolfskin, while Kirkland & Ellis International is the legal counsel.