ClubCorp purchased by buyout firm Apollo Group for $1.1 billion in cash

Xavier Trudeau
Juillet 10, 2017

Apollo Global Management (APO) announced yesterday that it would buy ClubCorp Holdings (MYCC), one of the largest operators of private golf clubs in the USA for $1.1 billion in cash or $17.12 per share.

The deal comes three months after ClubCorp announced the retirement of is CEO Eric Affeldt and said it had decided not to pursue a "strategic transaction", after efforts to explore a sale did not result in any offer for the entire company.

The all-cash transaction represents a premium of about 30.7% over ClubCorp's closing stock price on July 7, 2017. The company's board had continued a review of the company and was seeking a replacement for Affeld.

The shares have declined about 25 percent since reaching a closing high this year on February 21, the day before ClubCorp reported fourth-quarter earnings. The company stock was also targeted by a short-selling firm to drive the price down after determining golf's participatory and cost issues weakened ClubCorp's position in the market. Apollo is one of Wall Street's largest private equity firms, with $197 billion in assets under management.

The deal is expected to close in the fourth quarter.

Simpson Thacher & Bartlett LLP acted as legal counsel for ClubCorp. Paul, Weiss, Rifkind, Wharton & Garrison LLP is Apollo's legal counsel.

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