Golf’s most exciting putter brand sold in multimillion dollar deal
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Fresh off winning its first major, the head-turning putter company preferred by the likes of JJ Spaun, Rickie Fowler and Adam Scott is set to be bought by a private equity firm.
LAB Golf, the start-up company behind those funky-looking but brilliantly-balanced putters, has been sold for a huge sum.
A majority stake in the company has been bought by L Catterton, a private equity firm backed by LVMH. And while no figure has been made official, it is being reported by the Wall Street Journal as north of $200 million.
Today’s Golfer spoke to sources close to LAB Golf on Tuesday morning who confirmed the validity of the rumor. LAB then confirmed the news later that day.
A statement read: “L Catterton, the largest global consumer-focused private equity firm, today announced that it has made a strategic investment in LAB Golf, a disruptive and fast-growing golf equipment company transforming the putter category through its proprietary technology and deep customization capabilities.
LAB Golf has developed a passionate following among professionals and amateurs alike. By eliminating torque, its patented design helps keep the putter face square throughout the stroke, thus helping golfers putt more consistently. The company has experienced rapid growth in recent years, driven by word-of-mouth advocacy, industry leading satisfaction, professional adoption, a differentiated direct-to-consumer experience allowing significant customization and personalization, and a relentless focus on quality and customer service.”
Explaining the acquisition, Matt Nugent, a partner at L Catterton said: “We’ve spent decades partnering with visionary teams to build some of the world’s most beloved consumer brands – from iconic names like Pinarello to Birkenstock and Peloton.
“What immediately stood out about LAB Golf is the strength of the product, the passion of its community, and the success it has had creating significant innovations that are benefiting golfers.
“At L Catterton, our approach is rooted in true partnership: we collaborate closely with founders and operators to drive sustainable growth. With our deep consumer insights, our experiences growing product companies and brands, and our hands-on operational resources, we’re excited to help LAB Golf grow its business, broaden and improve its already exceptional product assortment, and reach more golfers around the world.”
The partnership, the statement says, “will support LAB Golf as it accelerates product innovation, enhances its direct-to-consumer experience, grows its presence across the retail channel, and expands internationally into new markets where premium golf equipment is in high demand”.
It continues: “With millions of potential custom configurations and a strong track record of improving player performance, the company is poised to continue redefining what golfers expect from their equipment.”
LAB Golf’s co-CEOs Sam Hahn and Robert Johnson will remain in post.
“We didn’t set out to build a brand—we set out to build a better putter,” Hahn, who also co-founded the company, said.
“That mission struck a chord with golfers who were frustrated with traditional options, and we’ve been blown away by the response. We’re thrilled to have found a partner in L Catterton who shares our vision and values and is equipped to help us continue investing in our business, growing our brand, and creating more happy golfers.”
Johnson added: “From day one, L Catterton showed a deep understanding of the golfer and the category. Their track record of building brands, working side-by-side with management teams, and investing in quality and growth has made them the clear partner of choice.
Together, we’ll keep pushing boundaries and bringing smarter, better gear to golfers around the world.”
Before it was made official, Hahn’s fellow co-founder, Bill Presse, had posted on Reddit to confirm the news.
“Yes, we sold the majority shares of LAB,” he wrote. “From start to finish my dreams have all been realized.
“The new owners are incredible. Because of the LAB story and the culture I want everybody to know that I am also a shareholder in the new company and hopefully very much involved going forward to really see this to the end.
“Please, no hard feeling just because they’re [private equity]. They’ve gone above and beyond to do the right things. [I] truly couldn’t be happier.”
If the figures are to be believe, it would represent the most lucrative sale of a putter company since Odyssey was taken over by Callaway in 1997 for $130 million.
Why are LAB putters so popular?
LAB stands for “lie angle balance” in reference to the relationship between the centre of gravity of these putters and the shaft angle.
In layman’s terms, it makes the putters far more stable and less susceptible to twisting, making it easier for golfers to keep the face square throughout the stroke. That, in turn, should make it easier to hole putts.
The putters have become more popular on tour of late, while a number of YouTube stars also use them.
LAB captured its first major title earlier this year when JJ Spaun rolled in a monster putt across the 18th green at Oakmont on the final day of the US Open to seal a two-stroke victory.
Sales had already grown massively since Hahn’s takeover, and Spaun’s win with the DF3 zero-torque putter is set to further boost sales.
Speaking ahead of The Open at Royal Portrush, Spaun was asked what made him make the switch, saying: “I got the LAB putter, the DF3, last November. I had been looking for a little more forgiveness off the face as far as contact goes and I’d been using a traditional blade-style putter pretty much my entire career.
“Mallets were kind of a phase the last year or so. I had difficulty getting comfortable with a mallet with a traditional hosel and I just picked up one of the LABs on a Tuesday in Dallas at the Charles Schwab back in May [of last year] and I kind of liked it so I had one built and I had it at home and finally gave it some time in the off-season.
“I really learned to like it and understand my tendencies with it but the biggest thing I’ve noticed with that putter is that no matter where you hit it on the face, it carries the speed you’re intending to have.”
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Rickie Fowler is among the big names to put a LAB Golf putter in play.
