Apollo Global Management LLF acquires ClubCorp Holdings Inc for $1.1 billion

Apollo has been a prolific acquirer of golf courses.

On Sunday, Apollo Global Management LLC announced it has agreed to acquire, ClubCorp Holdings Inc, one of the largest owners and operators of a private country and golf clubs in the U.S. for $1.1 billion.

The move comes in the wake of ClubCorp’s CEO Eric Affeldt deciding not to pursue a “strategic transaction,” following efforts to explore a sale did not result in any offer for the entire company.

The Dallas-based company has however kept the strategic review committee of its board in place. It has yet to announce a successor to Affeldt.

The company had earlier struggled to remain in the black as its strategy of boosting golf club memberships through refurbishments, acquisitions and promotions proved too costly.

Apollo disclosed it will be paying $17.12 per share in cash for ClubCorp, which represents a premium of 30.7% over its closing price on Friday.

On Saturday, ClubCorp had declared a one-time dividend of 13 cents per share, to be paid later this month. It also stated, Apollo is expected to close by the fourth quarter of 2017.

In the last three, ClubCorp has been a serial acquirer in the golf course industry; it has acquired dozens of courses in the last three years.

Wells Fargo and Jefferies LLC acted as ClubCorp’s financial advisers while Simpson Thacher & Bartlett LLP acted as its legal counsel.

Citigroup acted as Apollo’s lead financial adviser with Deutsche Bank, Barclays, RBC Capital Markets LLC and Credit Suisse acting as advises.

Wharton & Garrison LLP, Paul, Rifkind, and Weiss acted as Apollo’s legal counsel.


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