Topgolf IPO could value company at $4 billion

Topgolf IPO could value company at $4 billion
Topgolf International, which has locations in Birmingham and Huntsville, may be planning to go public. (Michael Baxter, Baxter Imaging LLC)

Topgolf International Inc., an operator of driving ranges with a party atmosphere, has selected banks for an initial public offering that could value the company at about $4 billion, according to people familiar with the matter.

The Dallas-based company is working with banks, including Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp., said sources who asked to not be identified because the matter is private. Its IPO could come as soon as this year, they said.

Topgolf, led by Chief Executive Officer Dolf Berle, has $525 million in outstanding debt, according to data compiled by Bloomberg.

Representatives for Topgolf, Morgan Stanley, JPMorgan and Bank of America declined to comment.

The company’s driving ranges, which bring the spirit of a bowling alley to the golf course, have bays that can accommodate up to six players who can track their balls electronically while ordering food and drinks. Some venues feature rooftop bars, restaurants, shops, pools and concert halls. The company has locations in the U.S. (including Birmingham and Huntsville), the U.K. and Australia, with others opening soon in Canada, Mexico and the United Arab Emirates, according to its website.

Private firm Providence Equity Partners made a “sizable minority investment” in Topgolf in 2016, according to a statement at the time.

The company’s backers have included Callaway Golf Co., which acquired a minority stake with other investors in a deal completed in 2017.

 

(With assistance from Crystal Tse. Contact the reporters at [email protected], [email protected], and [email protected].)

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