ClubCorp announced it has signed an agreement to acquire Atlanta-based Sequoia Golf. The acquisition of Sequoia Golf will expand ClubCorp’s private clubs from 159 to 209.
Sequoia Golf, founded in 2002 by Joe Guerra in partnership with Parthenon Capital Partners, owns and operates 50 clubs with large concentrations in the Atlanta, Houston, Denver and Chicago markets. Combined, ClubCorp will serve more than 430,000 members.
“ClubCorp is the best fit for our members, employees and partners and the right evolution of our portfolio into a strong network of clubs,” said Joe Guerra, the president and CEO of Sequoia Golf, in a release. “The leadership that ClubCorp has provided in its club reinventions, adding member amenities, developing its O.N.E. (Optimal Network Experiences) product offering and growth via acquisitions, is a tremendous model for the club industry.”
Since 2007, ClubCorp has invested more than $400 million in maintenance and expansion into its existing clubs. For Sequoia Golf, ClubCorp is looking to invest non-recurring expansion capital in the first two years following the acquisition to improve golf course and practice facilities, create or update indoor and outdoor dining and social gathering facilities, add family-friendly pool amenities and enhance fitness facilities.
The acquisition of Sequoia Golf will also enhance the value of ClubCorp’s O.N.E. offering — a private club membership — to new and participating members.
“We are thrilled to combine our industry-leading collection of clubs with Sequoia Golf,” said Eric Affeldt, ClubCorp’s president and CEO, in the release. “Our combined membership base will benefit from an unmatched opportunity for reciprocal usage. We believe that geographic clustering improves operational efficiencies, drives club utilization, increases options available to our members and enhances the value of ClubCorp’s O.N.E. offering.”
ClubCorp will pay $265 million for Sequoia Golf before anticipated transaction expenses. The transaction is subject to customary closing conditions, and is expected to close during ClubCorp’s fiscal fourth quarter.
“Sequoia Golf aligns perfectly with our business model,” Affeldt continued. “It is a strong membership business that, like ours, generates nearly 50 percent of its revenue from membership dues. Sequoia Golf will strengthen and expand our cluster strategy to familiar markets … Adding Sequoia Golf’s portfolio of clubs bodes well for our business, and builds an increasingly powerful and more meaningful ClubCorp brand.”
