Callaway Golf Co. (ELY) on Wednesday announced the sale of the Top-Flite golf equipment and accessories brand to Dick's Sporting Goods, Inc. (DKS) as part of a restructuring underway at the manufacturer of golf clubs and golf balls.
Earlier this year, Callaway Golf completed the sale of the Ben Hogan brand, which it had acquired along with Top-Flite in 2003.
Both divestitures followed a global restructuring at Callaway Golf that streamlined the organization. The restructuring is aimed at reducing costs and increasing the focus on core business units.
Chip Brewer, who assumed the role of Callaway Golf's CEO last month, said, "The decision to sell Top-Flite reflects the company's renewed focus and commitment to driving the proficiency of our core businesses, specifically the success of Callaway and Odyssey products."
Callaway Golf sells golf apparel, footwear and accessories, under the Callaway Golf and Odyssey brands in over 110 countries worldwide.
Dick's Sporting said separately that it has completed the purchase of the intellectual property rights to the Top-Flite brand from Callaway Golf, adding to its portfolio of exclusive offerings. These intellectual property rights include all Top-Flite trademarks and service marks world-wide, the company added.
In yet another deal, Dick's Sporting on Wednesday came to the rescue of JJB Sports Plc. (JJB.L) by agreeing to make a 20 million pounds strategic investment in the UK sports retailer. The U.S. sports retailer will purchase 18.75 million pounds in junior secured convertible notes and 1.25 million pounds in ordinary shares of JJB Sports.
ELY closed on Wednesday at $6.78, down $0.14 or 2.02 percent, on a volume of 440.572 shares.
DKS shares gained $0.05 at $48.65 on 1.27 million shares.
by RTT Staff Writer
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