US golf brand giants Callaway has entered in to an agreement to acquire outdoor lifestyle brand Jack Wolfskin for €418m (£372m) in the first quarter of 2019.
The acquisition furthers US listed Callaway Golf Company’s push in the premium active lifestyle category, having previously aquired TravisMathew and Ogio in 2017.
Callaway Golf will become the sole owner of Jack Wolfskin, which is its largest acquisition to date in the premium active lifestyle segment. Chip Brewer, president and CEO of Callaway Golf, says: “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 to expand its presence in the high-growth, active lifestyle category, and we are very excited to work with Jack Wolfskin’s great leadership team, led by CEO Melody Harris-Jensbach, to maximise this brand’s growth potential.”
Callaway will integrate Jack Wolfskin as an outdoor brand into its portfolio of premium active lifestyle businesses and invest in the brand for the long term. Callaway has a very strong market presence in the US and Japan that should present Jack Wolfskin with further opportunities to grow internationally.
Melody Harris-Jensbach, CEO of Jack Wolfskin, says: “We are thrilled at the prospect of joining Callaway’s growing portfolio of premium, active lifestyle brands. Callaway has proven over many years that they are great innovators and brand builders and we look forward to contributing our own product excellence to the wider Group. The transaction is an important step for our brand.”
Jack Wolfskin’s largest current shareholders are affiliates of Bain Capital Credit, H.I.G. Bayside Capital CQS, Avenue Capital Group and BlueMountain Capital Management, which together own more than 67% of Jack Wolfskin.
Melody Harris-Jensbach continues: “We would like to thank our shareholders for their commitment and support over the last 18 months that has resulted in a highly productive partnership and a very successful financial result last year.”
In FY18, Jack Wolfskin generated sales of €334m and increased its adjusted EBITDA by almost a fifth to approximately €42.1m. It is one of the leading providers of functional outdoor clothing, footwear and equipment in Europe.