Callaway acquires bag-maker Ogio

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Callaway Golf announced Wednesday that it has purchased Ogio International Inc. for $75.5 million.

Ogio makes golf bags, as well as luggage and golf apparel. Ogio is expected to contribute approximately $45 million in revenue in 2017.

"We are excited about Ogio becoming part of Callaway and believe this acquisition aligns well with our stated goal of strategically developing growth in tangential areas," Chip Brewer, president and CEO of Callaway, said in a company-issued release. "Furthermore, there is a robust strategic fit between the companies; both are strong brands with a sports heritage that share a passion for creating high-quality, performance-driven products. There is also significant overlap in our supply chains and go-to-market strategies, which should allow us to add value and create profitable growth."