Callaway Golf took a step toward bringing Jack Wolfskin outdoor apparel to U.S. consumers by naming Utah as the home base for the brand's upcoming North American operations.
The California-based golf club maker, which acquired the German brand in January for $476 million, hopes to sign a lease for office space in Utah early next year. The site will eventually employ about 50 people handling merchandising, marketing, sales, e-commerce and business analytics.
Callaway _ which aimed to diversify its business beyond its core golf clubs and balls _ raised eyebrows among investors with its acquisition of Jack Wolfskin. Shortly afterward, activist shareholder Jana Partners bought a stake in Callaway, saying in a regulatory filing that the company's shares were undervalued and that it would push for strategic alternatives, including divesting of certain assets.
A key part of Callaway's growth strategy for Jack Wolfskin centers on expanding into the U.S. and Canada. Currently, the brand is sold primarily in Europe and China.
The exact timing for when Jack Wolfskin will launch in North America hasn't been determined, but Callaway hopes e-commerce and wholesale distribution will be in place by the middle of next year ahead of the fall/winter season.
"We are still working through the retail/brand strategies for North America," said Scott Goryl, a Callaway spokesman. "We do believe direct to consumer will be important for us as the brand awareness is low."
Founded in Frankfurt in 1981, Jack Wolfskin's products include high-end mountain and leisure clothing, footwear, backpacks, sleeping bags and tents.
"As an outdoor brand, we believe we will feel very much at home in Utah, which is a thriving and growing outdoor hub," said Helen Francis, communications manager for Jack Wolfskin North America. "We are also in great company here with a number of other, well-known outdoor brands that have based their headquarters in the state."
The Utah Governor's Office of Economic Development announced Jack Wolfskin North America was coming to the state. It is eligible for tax rebates not to exceed $105,461 over five years if it hits certain criteria.
"Jack Wolfskin will be an excellent addition to our outdoor industry sector," said Val Hale, executive director of the economic development office.
Callaway's shares ended trading Tuesday up 13 cents at $20.99 on the New York Stock Exchange.
