Callaway to buy Top-Flite assets

CARLSBAD, Calif. (July 1)—Callaway Golf Co. said it will pay about $125 million to purchase the major assets of Top-Flite Golf Co. in a June 30 deal reached after Top-Flite had filed for Chapter 11 protection under U.S. bankruptcy laws earlier in the day. The deal includes Top-Flite's manufacturing facilities, the Top-Flite, Strata and Ben Hogan brands, and all golf-related patents and trademarks. Callaway said the assets will be acquired free and clear of any existing debt and most liabilities included in Top-Flite´s Chapter 11 petition. Completion of the sale is contingent on approval of the U.S. Bankruptcy Court in Wilmington, Del., and antitrust authorities. Callaway said after the acquisition is completed it will consolidate its golf ball and golf club manufacturing and research and development operations. The firm expects to incur charges of up to $70 million in connection with the process. Top-Flite is the No. 2 maker of golf balls.