Callaway Hopes for Hole-in-1 With TravisMathew
Callaway Golf Co. recently announced that it had acquired Huntington Beach, Calif.–headquartered apparel brand TravisMathew, LLC for $125.5 million in an all-cash transaction.
Chip Brewer, the chief executive officer of the Carlsbad, Calif.–headquartered Callaway, said that the 10-year-old TravisMathew brand would serve as a growth vehicle.
“With its golf heritage, culture of product excellence and double-digit growth in the golf and lifestyle apparel business, TravisMathew is a great fit with our business, brands, culture and our strategy to grow in areas tangential to golf. This acquisition, once completed, is expected to be slightly accretive to earnings in 2018 and create significant value for our shareholders over the long term. We look forward to working with the TravisMathew management team to maximize this brand’s growth potential,” Brewer said in a statement.
Since 1982, Callaway has been making golf clubs, golf balls, equipment, apparel and accessories. In recent years, Callaway has been increasing its reach into apparel.
In January 2017, Callaway wrapped up its acquisition of Ogio International Inc., a golf-focused accessories and clothing company, also headquartered in Carlsbad. Callaway paid $75.5 million in an all-cash transaction for the company.
In July 2016, Callaway announced the completion of a joint venture with Japan-headquartered TSI Groove & Sports Co. Ltd. TSI is Callaway’s longtime apparel licensee. The new venture was called Callaway Apparel KK. It will design, manufacture and sell Callaway-branded apparel, footwear and headwear in Japan. Callaway Golf holds a 52 percent stake in the new venture.
TravisMathew will continue to be headquartered in Huntington Beach. The brand makes tops such as polos, button-ups, T-shirts and outerwear as well as shorts, pants, baseball caps, socks, boxers and footwear. It also runs a boys’ line and fashion belt–focused line Cuater.
TravisMathew also runs a line of boutiques located at high-end malls such as Westfield Century City, Fashion Island, UTC San Diego and Scottsdale Fashion Square in Scottsdale, Ariz. The brand also is sold at Nordstrom.
TravisMathew developed a prominent presence in the golf world when it started sponsoring pro golfers. TravisMathew also sponsors professional tennis players.