Apollo to buy golf course operator ClubCorp for US$1.1 billion

Private equity firm Apollo Global Management LLC has advised that it is to acquire ClubCorp Holdings Inc , one of the world’s largest owners and operators of private golf and country clubs for $1.1 billion.

The deal comes three months after ClubCorp announced the retirement of is Chief Executive Eric Affeldt and said it had decided not to pursue a “strategic transaction,” after efforts to explore a sale did not result in any offer for the entire company.

Apollo said it will pay US$17.12 per share in cash for ClubCorp, a 30.7% premium over its closing price on Friday, but less than the 12-month high of $17.50 the shares reached in February, on investor expectations that a sale process first reported by Reuters in January would be successful.

Founded in 1957, ClubCorp operates more than 200 properties, including golf and country clubs, business clubs and sports clubs across the United States, Mexico and China, serving more than 430,000 members.

ClubCorp has been a consistent acquirer in the golf course industry, buying dozens of courses in the last three years. It has sought to buy locally owned golf courses and refurbish them by adding or improving amenities such as up-scale dining and event rooms.

KSL Capital, another private equity firm, acquired ClubCorp for US$1.8 billion, including debt, in October 2006 and took it public in 2013. The deal with Apollo on Sunday valued ClubCorp at US$2.2 billion, including debt. 

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