If you thought the most surprising development in the golf world on Thursday was Steph Curry dropping a respectable 74 at a Web.com Tour event, guess again. Callaway Golf announced it has entered into a definitive agreement to acquire SoCal apparel brand TravisMathew for $125.5 in an all-cash transaction. In the words of Randy Moss, that’s “straight cash, homie.”

The amount is subject to a working capital adjustment. This means there could be an adjustment to the purchase price based on TravisMathew’s current assets minus current liabilities. (I knew that junior year finance class would come in handy at some point.) The deal also needs to go through all of those normal closing conditions and regulatory approvals, but it is expected to close in the third quarter of this year.

“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. We look forward to working with the TravisMathew management team to maximize this brand’s growth potential.”
— Chip Brewer, President and CEO of Callaway Golf Company

TravisMathew’s net sales are expected to check in at $55-$60 million this year. About $10-$15 million are expected to hit Callaway’s 2017 financial result if the deal closes in the third quarter. This is the second all-cash deal this year for Callaway. In January it purchased Ogio for $75.5 million.

So, what does this mean? Will Callaway Tour players be switching to TravisMathew threads?

It is too early to tell Callaway’s plans for the brand. TravisMathew will continue to operate out of its headquarters in sunny Huntington Beach, which is just up the (gridlocked) freeway from Callaway. Currently, Andres Gonzales, Colt Knost, and Stuart Appleby are the only PGA Tour players who rep both brands. But, wouldn’t it be great to see Phil sporting some TravisMathew?

Also, there is no word on how this news affects Callaway’s apparel label, which is out-licensed to Perry Ellis International.

Props to TravisMathew. 10 years ago the brand was a small start-up in Southern California. Thanks to a ‘cool kid’ vibe, engaging social media campaigns, and roaming party tour buses, it has become one of the powerhouses in the golf fashion world. The team at TravisMathew has always been first class and great to work with, too. We expect nothing but even bigger and better things in the future.

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