Eric Affeldt will step down as Chief Executive Officer of ClubCorp after the company’s board finds a replacement, the company announced. The announcement came on the same day that the public company announced it would not pursue a strategic transaction, but instead would continue to focus on its three pronged growth strategy — growth, reinvention and acquisitions.
The Dallas-based company formed a committee in January to review and evaluate alternatives to unlock the value inherent in the company and maximize value for all shareholders. That included a possible sale of the company.
“While we did not receive a purchase proposal for the entire company, the strategic review process has been useful in identifying opportunities and potential partners, and our Strategic Review Committee and Board will continue to consider all available alternatives to enhance value for shareholders,” said John Beckert, Chairman of the Board for ClubCorp.
ClubCorp finished fiscal year 2016 with record revenue and EBITDA and its sixth consecutive year of growth. It has completed 89 total club “reinventions” and seven club acquisitions since the beginning of 2016.
It also recently announced its fourth acquisition in 2017 with the purchase of Oakhurst Golf & Country Club, a private club in Clarkston, Michigan, just northwest of Detroit. ClubCorp plans to spend more than $1 million to reinvent the club bringing stylish and new dining and social features to the clubhouse and patio, plus improvements to the golf course and aquatics center.
Located in Oakland County, Oakhurst Country Club features an 18-hole Arthur Hills-designed golf course, and a three-level, 42,000-square-foot clubhouse, which offers upscale and casual dining, lounges and meeting rooms, elegant private event space, pro shop, and new locker rooms. Additional amenities include an Olympic-size pool and six tennis courts.
Affeldt, who is 58, joined ClubCorp as President and CEO in late 2006. has he led the Company through the best 10 years of its 60 year history, in terms of financial performance, and it is estimated that his total compensation has been as much as $2.2 million a year.
Prior to joining ClubCorp, he served as a principal of KSL Capital Partners. He also previously served as president and chief executive officer of KSL Fairways Golf Corporation from January 1995 to June 1998, vice president and general manager of Doral Golf Resort and Spa in Miami and the combined PGA West and La Quinta Resort and Club in California from June 1998 to June 2000. He was a founding partner of KSL Recreation Corporation.
ClubCorp also reported first quarter revenue was $221.3 million, up 3.0 percent, net loss decreased $0.8 million to $7.5 million, and adjusted EBITDA was $43.7 million, up 4.2 percent.