ClubCorp agrees to acquisition by Apollo Global Management LLC.
ClubCorp, the leading name in professional club management, has agreed to a $1.1 billion acquisition. The move comes less than a year after activist investor FrontFour Capital urged the company to consider “any and all strategic alternatives” including a sale of the company. In April, ClubCorp announced it wouldn’t consider a sale, but the departure of its long-standing CEO Eric Affeldt may have signaled the approach of changing attitudes.
ClubCorp’s share price has shot upwards by 27% in the last month
SOURCE: Yahoo Finance
Investors reacted enthusiastically to the news, and the company said: “this transaction represents the culmination of our review of strategic alternatives and achieves our goal of enhancing value for shareholders.”
David Sambur, senior partner at Apollo, made the following comment:
“We are excited for our funds to be acquiring ClubCorp. We look forward to working with ClubCorp’s outstanding management team and talented employees, who have built a best-in-class member-centric business that delivers exceptional experiences. We plan to leverage Apollo’s resources and expertise while working with ClubCorp’s dedicated team to continue to grow the business and provide the highest level of service and club offerings to members.”
ClubCorp owns or operates more than 200 private clubs worldwide, and the deal is expected to close in the fourth quarter of this year.
Dominion holds ClubCorp in its Global Trends Luxury Fund.
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