The $265 million deal adds 50 owned and operated clubs to ClubCorp’s portfolio, and increasing its number of private clubs by 30 percent.
ClubCorp has completed its acquisition of Atlanta-based Sequoia Golf, adding 50 owned and operated clubs, and increasing its portfolio of private clubs by 30 percent. Sequoia Golf adds nearly $100 million in LTM revenue and pro forma annual adjusted EBITDA of $29 million to $30 million with anticipated annualized cost synergies.
Sequoia Golf expands ClubCorp’s presence in Atlanta and Houston—including the addition of The Woodlands Country Club in Houston, site of the PGA Champions Tour Insperity Invitational—and adds Denver and Chicago as new markets. Including the acquisition of Sequoia Golf, ClubCorp has added 56 new owned and operated clubs to its portfolio from the start of this year.
ClubCorp plans to invest significant capital on reinvention projects to Sequoia properties, which includes varied improvements to golf course and practice facilities, newly created or updated indoor and outdoor dining and social features, family-friendly pool amenities and enhanced fitness facilities. Since 2007, ClubCorp has invested more than $410 million on reinventions, renovations and improvements to its existing portfolio of golf and business clubs.
“We are very excited about the addition of the Sequoia Golf properties to ClubCorp’s portfolio,” said Eric Affeldt, ClubCorp President and CEO. “We are in the membership business and this acquisition includes more than 27,000 memberships, which—because of our Network reciprocal-use program—presents tremendous benefits and value to our current members and the members of Sequoia clubs.”
“ClubCorp, with its high standards in operations, expanding network of reciprocal privileges and product offerings, and leadership in club reinventions, was strategically the best fit for our company,” said Joe Guerra, Sequoia president and CEO, who will serve as a senior advisor to ClubCorp. “This move will be highly beneficial for Sequoia and to our members.”
The addition of Sequoia Golf expands ClubCorp’s portfolio of private clubs from 159 to 209—making ClubCorp’s portfolio of owned and operated clubs nearly five times the size of its next largest competitor.
ClubCorp funded the $265 million acquisition of Sequoia Golf with $250 million in incremental term loans. Citigroup Global Markets Inc. and Deustche Bank Securities Inc. acted as lead arrangers for the syndication of the incremental term loans. Stephens Inc. and Citigroup Global Markets Inc. acted as financial advisors to ClubCorp on the Sequoia Golf acquisition. Robert W. Baird & Co. Incorporated acted as financial advisor to Sequoia Golf.
Affeldt has also been ranked No. 1 in Golf Inc. magazine’s 2014 “Most Powerful People in Golf” list. He tops a list of 30 that includes Donald Trump (No. 2), Jack Nicklaus (No. 4), Tim Finchem, Commissioner of the PGA Tour (No. 5), Mike McCarley, President of the Golf Channel (No. 16), and professional golfer Rory McIlroy (No. 19).
This is the second time Eric has topped the list—he was ranked No. 1 in 2010—which is based on the influence of an individual and their organization to positively impact the golf industry. The cover of the magazine says—“Eric Affeldt, Donald Trump and Rory charge up the list as the industry welcomes new money, new ideas and a new idol.”
C&RB‘s October 2014 issue features an interview with Affeldt and his views on the club industry’s present and future.
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