Callaway Golf Company Acquires Germany’s Jack Wolfskin

(Carlsbad, CA) For the modern golfer; bags, accessories and apparel are essential.  Additionally, the majority of golfers know that, no one does the previously said better than the Callaway Golf Company.  Recently, the aforementioned designer and manufacturer of golf clubs and golf balls revealed that, it has acquired Jack Wolfskin.  The aforementioned business, is headquartered out of the, Country of Germany.  The acquisition cost was revealed to be €418 million EUR, or, approximately $476 million USD.

          The total acquisition cost of $476 million dollars, is based on a Euro to US Dollar conversion rate of, 1.140 to 1.  For the Callaway Golf Company (NYSE:  ELY), the €418 million euro price tag means, owning Europe’s largest sports retail franchisor.  Fascinatingly; Jack Wolfskin is indeed, the German specialist of franchises that, make up Europe’s sports retail market.  Additionally; it is popularly known for its functional outdoor clothing, footwear and sports equipment.  Technically, this acquisition was done through, the Outdoor Holdings SCA.  The latter, is the Jack Wolfskin Group’s holding business.  This apparel brand; Jack Wolfskin, post-acquisition will continue the business operations, in the Country of Germany.  Specifically, the location of this business’s headquarters is, Idstein.  Melody Harris-Jensbach is the Chief Executive Officer of Jack Wolfskin.  Through a press statement, Ms./Mrs. Harris-Jensbach said the following.  We are thrilled to be joining Callaway’s growing portfolio of premium, active lifestyle brands.  The Callaway team has proven over many years that they are great innovators and brand builders.  We are excited to have them invest in our brand and are eager to start working with them.”

          On the part of the Callaway Golf Company, this recent acquisition highlights two other successful acquisitions.  These two acquisitions occurred in the year 2017, and, they were the acquisitions of clothing and apparel brands; Travis Mathew and OGIO.  For this particular acquisition; the Jack Wolfskin acquisition, the cost was financed through, a $480 million USD Term Loan B Facility.  The rationale for the acquisition cost is, Jack Wolfskin’s E.B.I.T.D.A.  The E.B.I.T.D.A., for the business year 2019 is, $33 million USD.  E.B.I.T.D.A. is an acronym that means earnings before interest, taxes, depreciation and amortization.  The aforementioned facility, or, business loan is from B of A Merrill Lynch, and, JP Morgan Securities, LLC.  A facility, is the same thing as a standard business loan.  However, it is usually a financial assistance program that, is part of the lender’s business operations.  Specifically, the $480 million dollar loan, has a repayment term of seven years.  The interest rate is L.I.B.O.R., plus 4.50%.  Unfortunately, the Callaway Golf Company does expect this acquisition to be dilutive, per share of common traded stock.  The rate of dilution is expected to be between, $0.05 cents to $0.11 cents, per share of common traded stock.  The previously stated, is based on G.A.A.P.  G.A.A.P. is an acronym, for generally accepted accounting principles.  G.A.A.P. is also a standard accounting principle, which has been adopted by the U.S. Securities and Exchange Commission.

          To end, the Callaway Golf Company sells accessories and apparel for the golf and lifestyle sectors of the economy, under the following brands.  The brands are Callaway Golf, Odyssey, OGIO and Travis Mathew.  The aforementioned business did release a press statement.  Chip Brewer is the President and the C.E.O. of the Callaway Golf Company.  Through a press statement, Mr. Brewer said the following.  “We believe Jack Wolfskin fits extremely well with our current brands and furthers our stated plan of strategic investments in complementary areas.  Jack Wolfskin provides an innovative product offering with long-term synergies to the existing soft goods portfolio.  We look forward to partnering with the Jack Wolfskin management team to maximize this brand’s growth potential.”  Chip Brewer also said.  “We are very excited to have completed this acquisition and have the Jack Wolfskin brand as part of the Callaway portfolio.”  As previously stated; the outdoor clothing, footwear and sports equipment brand Jack Wolfskin has been acquired.  The acquisition cost is €418 million EUR, or, approximately $476 million USD.  Additionally, the acquisition cost is based on a Euro to US Dollar conversion rate of, 1.140 to 1.  This acquisition was completed by, the Callaway Golf Company.  Lastly and the aforementioned business, is a U.S.A. based designer and manufacturer, of golf clubs and golf balls.



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