Topgolf’s Philadelphia-area projects still in the works as Callaway agrees to buy company

The acquisition of Topgolf Entertainment Group by Callaway Golf Co. isn’t expected to affect the development of two Topgolf projects in the Philadelphia area.

“We are looking forward to re-starting our development efforts regarding new venues,” said a company spokeswoman in an email on Oct. 27 regarding proposed projects in King of Prussia and Northeast Philadelphia.

The company declined to indicate the timing of the project or any other information about them.

The project in King of Prussia will be on the site of the former American Baptist Churches USA headquarters at 588 N. Gulph Road. The property totals 48.5 acres and is well located at Gulph Road and First Avenue with nearby access to Route 422 and other major roadways. “We’re still waiting to get the green light from Topgolf,” said Jerry Holtz of Provco Group about the King of Prussia project. Provco owns the Gulph Road property and would develop the Topgolf.

Topgolf is also planning a project on the former Nabisco and Mondelēz International factory at 12000 Roosevelt Blvd. in Northeast Philadelphia. Provco sold Topgolf 27 acres for the facility.

Callaway, a leader in the global golf equipment market that already had a 14% ownership stake in Topgolf beginning in 2006, will buy the Dallas-based company in an all-stock transaction. The deal also has Callaway assuming Topgolf’s net debt, which is estimated to be $555 million at closing, resulting in an estimated enterprise value for Topgolf of approximately $2.5 billion.

Topgolf generated roughly $1.1 billion in revenue in 2019 and has grown at a 30% compound annual rate since 2017, the company said.

The combination of TopGolf with Callaway will create a company with pro forma 2019 revenue of nearly $2.8 billion – a little more than $1.7 billion from Callaway and nearly $1.1 billion from Topgolf. In addition to Callaway, Topgolf ownership includes Providence Equity Partners, WestRiver Group and Dundon Capital Partners

The deal is expected to close in early 2021.

“Together, Callaway and Topgolf create an unrivaled golf and entertainment business,” said Chip Brewer, president and CEO of Callaway, in a statement. Dolf Berle, CEO of Topgolf, will remain in his position until the transaction closes. Topgolf will remain headquartered in Dallas.

Topgolf has 63 locations around the globe and locally it has a presence in Mount Laurel, N.J., and what it bills as its largest Swing Suite in America at the Ocean Resort in Atlantic City.

Its facilities had more than 23 million visitors in 2019 and more than 50% of them identified as non-golfers. The company said it has a “robust pipeline of new openings” over the next 10 years presumably including the addition of the two new locations in the region.