SOLD! LAB Golf Finds A Buyer in LVMH Backed L Catterton

When JJ Spaun sank his 60-plus-foot final putt at the U.S. Open in June, it wasn't just JJ and his caddie who celebrated the victory, because it also marked the first major victory for a LAB Golf putter.

Well, LAB Golf and its founder, Sam Hahn are celebrating once more after agreeing to a majority sale of the company to LVMH-backed private equity firm L Catterton. If LVMH sounds familiar, it's because they're the same folks who own such brands as Dior, Louis Vuitton, Tag Heuer, Moet, and many more in the luxury space.

As for the reported sale price...

(Drumroll please)

The company evaluation was set at just over $200 Million.

What Does This Mean For LAB?

The 10000-foot perspective looks pretty straightforward, especially when you consider some of the other consumer-focused brands that L Catterton manages in their portfolio.

It's expected to help LAB Golf expand its production capacity to meet the rapidly growing demand for its products, while keeping the people who made it successful in the first place, since all reports show that Sam Hahn will be staying put as CEO.

It makes even more sense when you consider that LAB Golf has limited capacity in production relative to the demand that has been generated over the last 2 years. And, without the ability to invest in growth, they could have ended up like other one-time hot golf companies that hit it big with a major win like Sonartec or Seemore (which is still around) but struggled to meet demand when Payne Stewart won the U.S. Open.

With Callaway rumored to be quietly waving a "for sale" sign over TopGolf for quite some time now, and TaylorMade working on finalizing a deal for it to be sold, this is one of the biggest deals in the golf space since Callaway snagged TopGolf for around $2 billion (with a B).

LAB Golf has experienced incredible growth since Sam took control of the company back in 2018, and this investment should only continue to help make them one of the most popular putter brands on the market.