Global Edition

ClubCorp engages Goldman Sachs

12.50am 15th May 2006 - Property

The Dallas-based ClubCorp, which with its affiliates own or operate nearly 170 golf courses, country clubs, private business and sports clubs, and resorts has engaged Goldman Sachs as its exclusive financial advisor to explore strategic options, including the possible sale of the company.
“Our Board has voted to pursue alternatives to realize more value and liquidity for ClubCorp shareholders,” said Bob Dedman, ClubCorp’s chairman. “The market conditions are favourable, the company has a strong management team, and it is well positioned for the future.”
In recent years, the company has successfully refocused on its core business of operating private clubs, improved its balance sheet and made strategic capital investments in its properties. Trends in member enrolment and retention are also positive.
“Our management team will continue to operate the company using the same guiding principles established by our founder Robert Dedman, Sr.,” said John Beckert, ClubCorp CEO. “We expect that any option we pursue will recognize the underlying value of the physical assets of the company as well as the benefits of having experienced, dedicated Employee Partners that are providing the highest levels of personalized service in a home-away-from-home atmosphere that defines the private club experience.”
If the decision is made to sell the company, the Dedman family will acquire Pinehurst, the historic North Carolina resort, and the balance of ClubCorp’s assets will go to another buyer. The company’s agreement with the Dedman family effectively increases its ownership and control of Pinehurst from 70 percent to 100 percent. Don Padgett II would continue to lead the Pinehurst management team that operates the resort.
“We believe it is important to preserve and enhance Robert Dedman Sr.’s legacy of stewardship at Pinehurst,” said Bob Dedman Jr., ClubCorp’s chairman. “We look forward to further improving the quality of the Pinehurst experience for both our club members and resort guests.”
Located in the North Carolina heartland, world-renowned Pinehurst Resort is home of golf’s greatest moments, hosting the 1999 and 2005 U.S. Opens. “We are excited about the future and the opportunity that ownership by the Dedman family presents,” said Padgett, president of Pinehurst. “By partnering with ClubCorp, their members who frequent the resort will continue to enjoy its privileges for many years to come.”
Founded in 1957, Dallas-based ClubCorp and its affiliates own or operate nearly 170 golf courses, country clubs, private business and sports clubs, and resorts. ClubCorp’s annual gross revenue for 2005 was $1.04 billion.
The company’s 18,000 employees serve the nearly 200,000 member households and 200,000 guests who visit ClubCorp properties each year.
Pinehurst Resort

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