Callaway Golf Strengthens Foothold in Activewear with Jack Wolfskin Acquisition - NBC 7 San Diego
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Callaway Golf Strengthens Foothold in Activewear with Jack Wolfskin Acquisition

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    Carlsbad-based Callaway Golf Company expanded its footprint into the activewear market with the $476 million acquisition of Jack Wolfskin in a deal announced Friday.

    Based in Idstein, Germany, Jack Wolfskin makes high-end outdoor apparel, footwear and equipment. The deal further Callaway's push into the active lifestyle market after its 2017 acquisitions of men's active lifestyle brand, TravisMathew, and sports bag maker, Ogio.

    "We are very excited to welcome the Jack Wolfskin brand into the Callaway portfolio," Callaway president and CEO Chip Brewer said in a statement. "(The deal) also helps Callaway expand its presence in the high-growth, active lifestyle category.”

    In addition to the European market, Jack Wolfskin also has a substantial presence in China, he said.

    News of the acquisition did not sit well with investors, however. Calloway's stock dropped 14.2 percent to $15.61 after the announcement, the lowest it's been since February. The price climbed back up to $17.13 when the market closed but was still 9.4 percent lower than when the market opened.

    Jack Wolfskin had a net sales of $380 million at the close of its fiscal year on Sept. 30. The $476 million deal was approximately 12 times the $40 million in profits for Jack Wolfskin 2018, before taxes and other deductions. 

    Calloway will release its next earnings report in January 2019 and the deal with Jack Wolfskin is expected to close the first quarter of 2019.

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