DALLAS and NEW YORK CITY—Country club owner/operator ClubCorp and Apollo Global Management said Sunday they had reached an agreement for Apollo-managed funds to acquire ClubCorp for $1.1 billion in cash. The announcement comes just a few weeks after ClubCorp, described by Reuters as “a serial acquirer in the golf course industry,” made its fifth such acquisition this year.
“This transaction represents the culmination of our review of strategic alternatives and achieves our goal of enhancing value for shareholders,” says John Beckert, chairman of the board at ClubCorp. “The company looks forward to working closely with Apollo as it enters the next stage of its growth.” This past April, CEO Eric Affeldt announced his retirement; a successor has not yet been named.
The Apollo funds will acquire all of the outstanding shares of ClubCorp for $17.12 per share, a premium of approximately 30.7% over ClubCorp's closing stock price this past Friday. The deal is expected to close in the fourth quarter, at which time ClubCorp's common shares will be delisted from the New York Stock Exchange.
ClubCorp began reviewing strategic alternatives this past January, and in April decided against a “strategic transaction” after the review did not produce a purchase offer for the entire company. The following month, the company reached an agreement with investor FrontFour Capital Group to add two independent directors, bringing the total board complement to 10.
Jefferies LLC and Eastdil Secured are acting as financial advisors to ClubCorp in connection with the Apollo acquisition, and Simpson Thacher & Bartlett LLP is acting as legal counsel. Citigroup is acting as lead financial advisor to Apollo, with other financial advisors including RBC Capital Markets, Barclays, Credit Suisse and Deutsche Bank. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as Apollo's legal counsel. Financing on the deal is being provided by Citigroup, Royal Bank of Canada, Barclays, Credit Suisse and Deutsche Bank.
Founded in 1957 and headquartered in Dallas, ClubCorp owns or operates a portfolio of over 200 golf and country clubs, business clubs, sports clubs and alumni clubs in 28 states, the District of Columbia and two foreign countries. Its properties include: Firestone Country Club, Akron, OH; Mission Hills Country Club, Rancho Mirage, CA; The Woodlands Country Club, The Woodlands, TX; Capital Club Beijing; and Metropolitan Club Chicago.
In April, ClubCorp announced a deal with Alexandria Real Estate Equities to develop a club in Seattle's South Lake Union district. Part of Alexandria's 400 Dexter Avenue North project, ClubCorp's Collective will encompass 15,000 square feet with amenities including a day + night bar, an urban spa and a bouldering gym.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
