DALLAS — ClubCorp Inc. entered into purchase agreements with KSL Capital Partners LLC for its portfolio of nearly 170 clubs and three resorts and with the Robert Dedman family for Pinehurst, the historic North Carolina resort. These two transactions, which are subject to customary closing conditions, have an aggregate transaction value of about $1.8 billion and are expected to close by the end of 2006.
According to ClubCorp, the sale will have no effect on its sports clubs.
KSL Capital Partners LLC is a private equity firm with an excess of $1 billion in committed capital that invests in travel and leisure businesses. KSL Capital specializes in five sectors in the travel and leisure industry: hospitality, recreation, clubs, real estate and travel services. ClubCorp, which operates golf, private club and resort facilities, falls within each of these sectors. In May, ClubCorp's board voted to explore strategic options, including a sale.
“This sale provides the desired liquidity for ClubCorp shareholders,” says John Beckert, ClubCorp CEO. “More importantly, KSL Capital Partners brings expertise and capital that will enable ClubCorp to expand the enterprise and create new business opportunities to build on our past success.”
KSL Capital Partners' independent management company, KSL Resorts, currently manages three ClubCorp locations in California.
“ClubCorp provides a significant platform for our entry into the membership side of the leisure business,” says Michael Shannon, managing director of KSL Capital Partners.
ClubCorp earned 2005 annual gross revenues of $79 million in its club business, ranking it ninth on Club Industry's Fitness Business Pro's 2006 Top 100 club list.
KSL and ClubCorp have committed to a combined $150 million in capital investments over the next two years and to continue to reinvest in current ClubCorp properties and expand depending on market needs.