ClubCorp shook the golf industry by
announcing in July that it would sell
its outstanding shares to Apollo Global
Management for $1.1 billion – 30. 7 percent more than the company’s closing
stock price at the time.
As part of the transaction, which is
scheduled to close before the end of the
year, Apollo agreed to assume ClubCorp’s
$1.1 billion in debt, bringing the total
transaction to $2.2 billion.
The sale will spell the end of ClubCorp’s
four-year run as a public company and
leave the golf industry without any publicly traded management companies. KSL
Capital, another private equity firm, took
ClubCorp public in 2013.
ClubCorp spent much of the past year
weighing possible sale options in an effort
to placate investors who were unhappy
with its financial performance. But the
move came as a surprise, because the
Dallas-based company had announced in
April that it had not received a purchase
proposal for the entire company.
At the time, John Beckert, ClubCorp’s
chairman of the board, said the company
would continue to consider “all available
ClubCorp sells for $2.2 billion total
alternatives to enhance value for share-
In May, ClubCorp reached a settle-
ment with FrontFour Capital Group,
a disgruntled minority shareholder,
to add two independent directors to
the board. FrontFour had previously
called for exploring options to improve
ClubCorp’s bottom line, including a sale,
and ClubCorp continued to work with
Jefferies Group and Wells Fargo & Co. to
ClubCorp finished fiscal year 2016 with
record revenue and EBITDA (Earnings
Before Interest, Taxes, Depreciation and
Amortization). It was the company’s sixth
consecutive year of growth. Its revenue
increased by one-third during the past
four years, turning a $41 million loss in
2013 into a $3.6 million profit last year.
But ClubCorp invested a lot of money
along the way, as it spent $690 million to
“reinvent” its clubs.
Since 2010, ClubCorp has acquired
more than 56 golf and country clubs at a
total price of more than $400 million.
Apollo will acquire ClubCorp for $17.12
per share in an all-cash transaction.
Apollo is a global alternative investment
manager with assets of approximately
$197 billion under its management. They
include private equity, credit and real
estate funds invested across nine industries. It previously owned Meadowbrook
Golf Group, which it acquired in the
late 1990s. In 1999, it acquired KSL
Fairways Golf Corp., which at the time
owned 24 golf properties, and merged
it into Meadowbrook. But after that,
Meadowbrook shrunk in size.
Apollo owns a handful of notable companies in the hospitality industry, including Diamond Resorts International, which
it acquired in 2016. It also owns Caesar’s
Entertainment Corp., Chuck E. Cheese’s
and Great Wolf Resorts. ClubCorp will
be Apollo’s first foray into a membership-based industry.
Peed family buys
Texas private club
The Peed family, owner of Ballyhack Golf
Club in Roanoke, Va., has added Briggs
Ranch Golf Club in San Antonio, Texas,
to its growing collection of private clubs.
The acquisition was made through
Hana Golf, a golf investment company
managed by Zach Peed.
Briggs Ranch joins a network of full-service private clubs that are marketed to
business executives and corporate entities
for retreats and other events. Ballyhack
was acquired in 2016 through Kula Golf,
another Peed-controlled investment vehi-
Briggs Ranch Golf Club
San Antonio, Texas