Troon Golf has acquired Honours Golf in an all cash deal that pushes the portfolio of the world’s largest management company to more than 250 courses.
Honours Golf, one of the leading golf management companies in the Southeastern United States, has 16 courses. Bob Barrett, who is CEO of Honours Golf, has signed a long-term employment contract with Troon and will remain in Birmingham, Ala.
Troon will retain the Honours brand and Barrett will continue to oversee the Honours courses.
“This is a ‘family of brands’ strategy that gives us greater opportunities for growth,” said Dana Garmany, CEO of Troon Golf. “This is an offering that will cast a wider net across a bigger swath of the industry.”
Garmany said he had been open to a management company acquisition for some time, and had been in discussions for more than a year. Troon announced that Kohlberg & Company, a private equity firm, had acquired a majority of the Troon Golf stock, replacing Starwood Capital and Goldman Sachs as majority shareholders in July. At the time, he said the infusion of cash could lead to the acquisition of other management companies.
Troon acquired Honours from its three owners, Bob Barrett, Rob Shults and Bob Julian. Shults co-founded Honours with Barrett in 1998, but will not work for Troon. Barrett and Shults still own assets that are managed by Honours.
“I am delighted to join with Troon in this new and exciting opportunity,” Barrett said. “Troon has for many years been the leading golf management company and I look forward to the collaborative effort to help advance both the Troon and Honours names.”
Garmany said Honours Golf and Troon share the same philosophies and a similar portfolio.
Honours Golf manages high-end courses in Alabama, Florida, Mississippi and North Carolina. While Troon manages courses in each of those states, it has had a smaller presence in Alabama and Georgia. Garmany said the portfolio gives Troon a strong cluster in the Southeast.
“The timing worked for both of us,” he said. “We will work together for a few years. We will leave the office in tact and add some people to it.”
Troon will now sell the Honours brand, offering clients more options. Garmany said the differences of the two brands will be in the details.
“Honours Golf is an ideal addition to the Troon family,” said Tim Schantz, Executive Vice President, Global Development Officer, Troon. “Both companies share complementary values, and the combination will undoubtedly help each company continue to grow, particularly in the Southeastern United States.”
Garmany said more deals are in the works. The company has recently announced several new management contracts, growing its portfolio from 207 to 234 courses.
“Strategically, it’s the perfect time for what we are doing,” Garmany said. “We have had a banner year for adding these things. The deals are one at a time, but it also means that no one owner has leverage. We have 250 courses and around 235 owners.”
Garmany said the acquisition price was based on Honours golf’s EBITDA. The two companies will now begin to integrate their operations.
“Bob Barrett is one of the most respected business leaders in our industry,” stated Dana Garmany, chairman and CEO, Troon. “Everyone at Troon is excited to welcome Bob and his team into the Troon family and to move forward in growing both brands and expanding our services.”