Callaway is upping its bag game.
The Carlsbad, Calif., clubmaker has acquired Ogio International, Inc., for $75.5 million. Ogio, a manufacturer of premium golf bags, luggage, backpacks, and apparel, at one time made golf bags for Callaway Golf and has grown into a solid lifestyle/action sports brand. The acquisition is expected to help Callaway's potential growth in the lifestyle category while also further contributing to the company's presence in golf.
"We are excited about OGIO becoming part of Callaway and believe this acquisition aligns well with our stated goal of strategically developing growth in tangential areas," said Chip Brewer, president and chief executive officer of Callaway Golf. "Furthermore, there is a robust strategic fit between the companies; both are strong brands with a sports heritage that share a passion for creating high-quality, performance-driven products. There is also significant overlap in our supply chains and go-to-market strategies, which should allow us to add value and create profitable growth."
Representatives at Callaway have yet to respond to queries but according to the release, but Ogio is expected to contribute approximately $45 million in revenue to Callaway Golf in 2017. On Thursday Callaway will host a conference call with analysts and investors at 5 p.m. EST to discuss the deal.