Although ClubCorp is looking for a buyer for most of its assets, the company will remain largely the same, according to John Beckert, ClubCorp c.e.o.
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Beckert says even though the numbers for rounds played has been flat in the past few years, Dallas-based ClubCorp has been enjoying growth, and the possible sale has nothing to do with any drop-off in the golf industry as a whole.
“Our balance sheet is in the strongest position it has been,” he says. “A lot has been going into greens renovations, and we have been able to have positive growth for the last three years.”
May 12, ClubCorp, which includes about 170 golf courses, country clubs, private businesses and sports clubs and resorts, announced it has employed the services of Goldman Sachs 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,” says Bob Dedman, ClubCorp’s chairman, in a statement. “The market conditions are favorable, the company has a strong management team, and it is well positioned for the future.”
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If the company is sold, Dedman and his family will acquire Pinehurst, the historic North Carolina resort. This would be the only facility not included in the sale. Don Padgett II would continue to lead the Pinehurst management team that operates the resort.
ClubCorp was founded in 1957. Golf courses consist of about 51 percent of its facilities, including some nationally-recognized courses such as Firestone Country Club in Akron, Ohio; Vista Vallarta in Puerto Vallarta, Mexico; and Mission Hills Country Club in Rancho Mirage, Calif.
Besides these renowned courses, Beckert says ClubCorp also has successful facilities in its portfolio that integrate new features its 200,000 member households welcome.
“We continue to expand our offerings to our members,” he says. “We’ve offered athletic facilities, day spas and daycares.”
Beckert expects the sale to receive plenty of interest from possible buyers and says the sale price depends on the market. The process could take about four to six months and might not result in a sale. The company’s annual gross revenue for 2005 was $1.04 billion.
Beckert is confident he will continue to hold his post if the company is sold. He expects to continue with the club renovations that are in progress at various sites. It’s all part of reinvesting the capital into existing assets, he says.
“It’s going to be business as usual,” he says. “Personally, I’m excited about the future of the industry and the future of the company.” GCN
