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ClubCorp Agrees to Be Bought by Apollo for $1.1 Billion

ClubCorp agrees to be bought by Apollo for $1.1 billion

  • ClubCorp Agrees to Be Bought by Apollo for $1.1 Billion

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    July 9, 2017, 3:39 PM EDT

    July 9, 2017, 4:50 PM EDT

    ClubCorp Holdings Inc., owner and operator of golf and country clubs, agreed to be acquired for about $1.1 billion by Apollo Global Management LLC in an all-cash transaction.Investors will receive $17.12 a share, the Dallas-based company said in a statement Sunday.

  • ClubCorp said in January that it hired Jefferies and Wells Fargo Co. to evaluate options to enhance shareholder value, and in May added two new independent contractors in an agreement with activist shareholder FrontFour Capital Group LLC.
  • Last year short seller Kerrisdale Capital Management targeted ClubCorp, saying that participation in golf is shrinking, particularly among younger players, and that operating golf clubs is a capital-intensive business.
  • The shares have declined about 25 percent since reaching a closing high this year on Feb. 21, the day before ClubCorp reported fourth-quarter earnings.Founded in 1957, the company owns or operates more than 200 private golf, country and private clubs that serve 430,000 members.
  • Its properties include the Mission Hills Country Club in Rancho Mirage, California; the Woodlands Country Club in Texas; the Firestone Country Club in Akron, Ohio; and the Capital Club Beijing, according to the statement.The transaction is expected close in the fourth quarter, the company said.Simpson Thacher Bartlett LLP acted as legal counsel for ClubCorp.

ClubCorp Holdings Inc., owner and operator of golf and country clubs, agreed to be acquired for about $1.1 billion by Apollo Global Management LLC in an all-cash transaction.

@business: ClubCorp agrees to be bought by Apollo for $1.1 billion

ClubCorp Holdings Inc., owner and operator of golf and country clubs, agreed to be acquired for about $1.1 billion by Apollo Global Management LLC in an all-cash transaction.

Investors will receive $17.12 a share, the Dallas-based company said in a statement Sunday. The price represents a 31 percent premium over the closing stock price on July 7.

ClubCorp said in January that it hired Jefferies and Wells Fargo & Co. to evaluate options to enhance shareholder value, and in May added two new independent contractors in an agreement with activist shareholder FrontFour Capital Group LLC. Last year short seller Kerrisdale Capital Management targeted ClubCorp, saying that participation in golf is shrinking, particularly among younger players, and that operating golf clubs is a capital-intensive business.

The shares have declined about 25 percent since reaching a closing high this year on Feb. 21, the day before ClubCorp reported fourth-quarter earnings.

Founded in 1957, the company owns or operates more than 200 private golf, country and private clubs that serve 430,000 members. Its properties include the Mission Hills Country Club in Rancho Mirage, California; the Woodlands Country Club in Texas; the Firestone Country Club in Akron, Ohio; and the Capital Club Beijing, according to the statement.

The transaction is expected close in the fourth quarter, the company said.

Simpson Thacher & Bartlett LLP acted as legal counsel for ClubCorp. Citigroup was lead financial adviser to Apollo, and other advisers include RBC Capital Markets LLC, Barclays, Credit Suisse and Deutsche Bank. Paul Weiss Rifkind Wharton & Garrison LLP acted as Apollo’s legal counsel.

ClubCorp Agrees to Be Bought by Apollo for $1.1 Billion

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