Callaway Golf Co. to buy Top-Flite golf ball maker

CHICOPEE, Mass. (AP) -- The world's biggest golf club manufacturer will buy one of the nation's oldest and largest golf ball makers in a deal Callaway Golf Co. hopes will help the company finally make money on golf balls.
On Thursday, a federal bankruptcy court approved Callaway's offer to buy Chicopee-based Top-Flite Golf Co. for $174 million, above its initial offer of $125 million, Callaway spokesman Larry Dorman said.
Callaway, of Carlsbad, Calif., beat out German sporting goods giant Adidas in a bid to acquire Top-Flite's assets after it sought Chapter 11 bankruptcy protection in June. More than 30 bids and counterbids were exchanged until Adidas-Soloman AG pulled out early Thursday, Top-Flite said.
"We fully expect our combined golf ball business to be profitable going forward, ending the profit drain we have experienced from our own golf ball operations since start up," Callaway chief executive Ron Drapeau said in a statement.
Privately held Top-Flite was formerly Spalding Sports Worldwide. The name was changed in April after the company sold the Spalding brand and its line of inflatable balls to Russell Corp.
Top-Flite had $250 million in golf ball sales last year. But chief executive Jim Craigie said the company's $530 million in debt in a highly competitive market forced it into bankruptcy. Under the deal, Callaway will assume Top-Flite's debt.