Carlsbad-based Callaway Golf Co. announced Wednesday that it acquired sports bag maker Ogio International for $75.5 million.
Callaway, a manufacturer of golf equipment, said Ogio will provide the company with a platform for future growth in the "lifestyle" category. Ogio's products include golf bags and backpacks.
"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 CEO of Callaway Golf.
"Furthermore, there is a robust strategic fit between the companies β both are strong brands with a sports heritage that share a passion for creating high-quality, performance-driven products," Brewer said. "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."
Callaway said it expects Draper, Utah-based Ogio to generate revenue of about $45 million this year. The acquisition should reduce earnings per share by around 2 cents this year, but provide growth for investors thereafter, according to Callaway.
