Callaway Golf Strengthens Presence with OGIO Acquisition
Callaway Golf Company has acquired OGIO International, Inc. for $75.5 million in an all-cash transaction.
The acquisition enhances Callaway's presence in golf while also providing a platform for future growth in the lifestyle category.
"We are excited about OGIO becoming part of Callaway and believe this acquisition aligns well with our stated goal of strategically developing growth in tangential areas," commented Chip Brewer, president and Callaway's chief executive officer.
"There is a robust strategic fit between the companies: Both are strong brands with a sports heritage that share a passion for creating high-quality, performance-driven products," Brewer said. "There is also significant overlap in our supply chains and go-to-market strategies, which should allow us to add value and create profitable growth."
Callaway projects the acquired business will generate annual EBITDA of approximately $10 million after the acquisition is integrated and the majority of operational synergies are realized. Callaway estimates that the majority of the operational synergies will be realized within two years.
CGT recently presented its CIO of the Year Award to Sai Koorapati, Vice President, Global IT of Callaway, during a special awards ceremony on October 19th at the 2016 Consumer Goods Business & Technology Leadership Conference in Orlando, Fla.