Callaway Golf K.K., the Tokyo-based subsidiary of Callaway Golf Company has acquired the remaining 48% stake in its joint venture (JV) Callaway Apparel K.K. for US$18bn.
In a statement, Callaway Golf said its Japanese subsidary now owns 100% Callaway Apparel K.K., an apparel joint venture between Callaway and its long-time partner, TSI Groove & Sports Co. Ltd.
The JV designs, manufactures and sells Callaway branded apparel, footwear, and headwear in Japan.
“We are pleased with the success of our apparel business in Japan,” said Chip Brewer, president and CEO of Callaway Golf. “We have a great relationship with TSI Groove & Sports, but acquiring full ownership of this business provides our Asia team with a platform and the flexibility to support a fully integrated, multi-branded soft goods business in Asia. This acquisition is consistent with our strategy to accelerate growth in our soft-goods business across brands and geographies.”
The joint venture began operations on 1 July 2016, with its headquarters in Tokyo. TSI had previously partnered with Callaway as a licensee, helping to successfully launch and grow that business since 2002.
Callaway Golf Company said the transaction would not affect the company’s prior financial guidance for 2019.