I assume you already heard about the latest acquisition of Callaway Golf. If not then, Callaway has just acquired the start-up putter company (just 11-month-old!!) the Toulon Design (based in Vista, California). Toulon Design was founded by Sean Toulon, a former Executive Vice President of Product Creation of TaylorMade Golf.
After the acquisition, Sean Toulon will join Callaway Golf as SVP, Callaway Golf and General Manager, Odyssey Brand. I don’t how many of you know about Toulon is that he played a major role in the explosive growth of TaylorMade. So he is one of the few people in the golf industry, who really know the golf equipment business.
This acquisition is more about intellectual property (e.g. the unique Deep Diamond Mill face pattern
milled from a solid block of soft 303 stainless steel) and intangibles. At Callaway Golf, they are expecting that the Odyssey Golf putters will grow stronger and strengthen its #1 position across the major worldwide Tours.
This is a classic business action by a market leader to secure its first position in the market.