ClubCorp, one of the largest operators of golf and country clubs, agreed Sunday to be acquired by private equity firm Apollo Global Management for about $1.1 billion, ending its search for an investor amid slowing membership growth and losses.
In the all-stock deal, shareholders of ClubCorp will receive $17.12 per share in cash, a premium of about 30.7% over ClubCorp’s closing stock price on July 7.
ClubCorp’s management has been looking to sell its business for months as debt piles up and membership growth lags. In October, the Dallas-based company said it would miss its 2016 revenue and earnings guidance, driving investors to dump shares. The stock has fallen about 2% in the last 12 months, and is down 7% so far in 2017.
In the first quarter, ClubCorp’s revenue rose 3% to $221.3 million. Its net loss narrowed 9.7% to $7.5 million. Its liabilities, including long-term debt, totaled $1.99 billion.
Founded in 1957, ClubCorp owns or operates more than 200 golf and country clubs and sports clubs, attended by 430,000 members. Some of its most prominent properties include: Firestone Country Club in Akron, Ohio; Mission Hills Country Club in Rancho Mirage, Calif.; and The Woodlands Country Club in The Woodlands, Texas.
