Callaway Golf (NYSE:ELY) announces that it closed on the acquisition of Jack Wolfskin for €418M. The deal price works out to $476M assuming a 1.140 Euro/USD conversion rate.
The company says the acquisition furthers Callaway's push into the active lifestyle category after its successful 2017 acquisitions of TravisMathew and Ogio.
Jack Wolfskin will continue to operate out of its Idstein, Germany headquarters.
CEO statement: "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."
Callaway notes the term loan B market weakened during the period the company marketed its $480M loan to investors and therefore the estimated annual financing costs will be approximately $0.05 per share higher than previously estimated. As a result, Callaway currently estimates that this transaction is expected to be approximately $0.11 per share dilutive for full year 2019 and slightly accretive in 2020.
Source: Press Release
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