Subsequent Event

3 Months Ended

Mar. 31, 2025

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On April 10, 2025, we announced that we entered into a definitive agreement to sell 100% of the outstanding equity interests of Callaway Germany Holdco GmbH, which owns various entities that operate the Jack Wolfskin business, to Anca Holdco GmbH & Co. KG, a subsidiary of ANTA Sports Products Limited, for $290.0 million in cash, subject to adjustments for net working capital and other customary conditions. We expect the JW Sale to close in the late second quarter or early third quarter of 2025, subject to the satisfaction of certain specified closing conditions, including the receipt of certain regulatory approvals.

In connection with the foregoing, we entered into an amendment to the 2023 ABL Credit Facility on April 9, 2025, in order to, among other things, (a) permit the release of Jack Wolfskin Ausrüstung Für Draussen GmbH & Co. KGaA, as a borrower and a guarantor under the 2023 ABL Credit Facility, upon the consummation of the JW Sale, (b) permit the reallocation of a portion of the revolving commitments under the 2023 ABL Credit Facility, in an aggregate principal amount of $20 million, from the German Facility thereunder to the U.S. facility thereunder (the “German Facility Reallocation”), and (c) permit the termination of the remainder of the German Facility (the “German Facility Termination”), in each case, subject to certain customary closing conditions.