ClubCorp closes on Sequoia deal

ClubCorp has completed its acquisition of Atlanta-based Sequoia Golf, adding 50 owned and operated clubs and increasing its portfolio of private clubs by 30 percent.  Sequoia Golf adds nearly $100 million in revenue and pro forma annual adjusted EBITDA of $29 million to $30 million.

“We are very excited about the addition of the Sequoia Golf properties to ClubCorp’s portfolio,” said Eric Affeldt, ClubCorp President and CEO. “We are in the membership business and this acquisition includes more than 27,000 memberships, which – because of our Network reciprocal-use program – presents tremendous benefits and value to our current members and the members of Sequoia clubs.”

Sequoia Golf expands ClubCorp’s presence in Atlanta and Houston – including the addition of The Woodlands Country Club in Houston, site of the PGA Champions Tour Insperity Invitational – and adds Denver and Chicago as new markets.  Including the acquisition of Sequoia Golf, ClubCorp has added 56 new owned and operated clubs to its portfolio from the start of this year.

ClubCorp plans to invest significant capital on reinvention projects to Sequoia properties, which includes varied improvements to golf course and practice facilities, newly created or updated indoor and outdoor dining and social features, family-friendly pool amenities and enhanced fitness facilities.  Since 2007, ClubCorp has invested more than $410 million on reinventions, renovations and improvements to its existing portfolio of golf and business clubs.  

“ClubCorp’s impressive reputation and consistent growth served as the best fit for our employees, members and partners,”said Joe Guerra, president and CEO of Sequoia Golf. “For years, ClubCorp has offered members a strong network of clubs, amenities and products and has many exciting improvements in the works.”

The addition of Sequoia Golf expands ClubCorp’s portfolio of private clubs from 159 to 209

ClubCorp funded the $265 million acquisition of Sequoia Golf with $250 million in incremental term loans.  Citigroup Global Markets Inc. and Deustche Bank Securities Inc. acted as lead arrangers for the syndication of the incremental term loans.  Stephens Inc. and Citigroup Global Markets Inc. acted as financial advisors to ClubCorp on the Sequoia Golf acquisition.  Sequoia was advised by Robert W. Baird & Co., Deloitte Corporate Finance, Kirkland & Ellis LLP and Greenberg Glusker. 

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