Oct 20, 2006 10:27 AM
ClubCorp Sold to KSL Capital Partners and Dedman Family
DALLAS -- ClubCorp Inc. has 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 approximately $1.8 billion and are expected to close by the end of 2006.
KSL Capital Partners, LLC is a private equity firm with in 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.
"This sale provides the desired liquidity for ClubCorp shareholders," said 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 ClubCorp’s Hotel del Coronado in San Diego, La Costa Resort and Spa in Carlsbad, CA, near San Diego, and Rancho Las Palmas Resort & Spa in Rancho Mirage, CA.
"ClubCorp provides a significant platform for our entry into the membership side of the leisure business," says Michael S. Shannon, managing director of KSL Capital Partners. "We have been impressed with the management team, and we believe the investment by our firm will add value for ClubCorp's nearly 200,000 member households."
Founded in 1957, Dallas-based ClubCorp and its affiliates own or operate nearly 170 golf courses, country clubs, private business and sports clubs, and resorts. ClubCorp's annual gross revenue for 2005 was $1.04 billion.
KSL and ClubCorp have committed to a combined $150 million in capital investments over the next two years and to continuing to reinvest in current ClubCorp properties and expanding depending on market needs.
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