Reuters reported that Ingersoll Rand, which acquired Club Car in 1995, was arranging to sell the golf car unit to Platinum Equity for around $1.7 billion, in a deal that could be announced as early as April 12th. Platinum Equity is seeking the deal in anticipation of a rebound in golf as a recreational sport following the pandemic, the Reuters report said.
Ingersoll Rand Inc. is nearing a deal to sell its Club Car golf car business to Platinum Equity for around $1.7 billion, Reuters reported, citing people familiar with the matter. The deal could be announced as early as April 12th, the Reuters report said.
Platinum Equity, controlled by billionaire Tom Gores, is seeking the deal in anticipation of a rebound in golf as a recreational sport following the pandemic, the Reuters report said.
Davidson, N.C.-based Ingersoll Rand’s Club Car unit that manufactures golf, utility and consumer low-speed vehicles unit reported 2020 revenue of $246 million, up 9% from the previous period, according to its Feb. 22 earnings statement, Reuters reported. The increase was “driven by continued strength in consumer vehicles, as well as growth in golf and aftermarket product offerings,” according to the statement.
Requests for response from both Ingersoll Rand and Platinum Equity for confirmation of the reported sale went unanswered, Reuters reported.
Platinum Equity last month kicked off a $4 billion debt sale, Reuters reported, to help fund its acquisition of supply chain company Ingram Micro Inc. amid an uptick in leveraged buyout activity.
Originally established in 1958 in Houston, Texas, Club Car was purchased by Bill Stevens, Jr. and moved to Augusta, Ga. in 1962, where its primary headquarters still reside.
A group of eight executives from E-Z-GO purchased the company in 1978 to begin running their own business, establishing Club Car as an in-town rival in the golf car industry. One of the first Club Car executives was E-Z-GO co-founder William Dolan.
Club Car was acquired by Ingersoll Rand in 1995 as part of the company’s Infrastructure division, and was merged with Bobcat to create a new, Compact Vehicles Technology division aimed at producing utility vehicles in addition to golf cars.
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