26 May 2004
Legal & General Ventures ("LGV") completed the acquisition of Clubhaus, the UK’s leading golf and country club operator, for £57m. The public-to-private was launched on 19 April and was effected through a public offer and a scheme of arrangement.
The Club Company operates 11 golf and country clubs, including the Castle Royle club, near Maidenhead, Nizels, near Sevenoaks, and The Tytherington in Macclesfield. The clubs are predominantly freehold or long leasehold. Seven of the clubs follow The Club Company country club format, offering members a full range of facilities including gym, swimming, spa, sauna, health & beauty, crèche and function rooms. The remaining four golf-only clubs have planning permission to be developed into country clubs.
LGV is backing the current management team, led by Managing Director, Charlie Parker, and has introduced the ex-Managing Director of Intercontinental Hotels, Gavin Simonds, as Chairman.
The deal was structured to ensure the support of both bondholders and shareholders and at 10am on Wednesday 26th May, the acquisition vehicle had received 97.6% acceptances and the offer was declared unconditional. The company’s existing principal bankers, Barclays, have agreed to roll over their debt and, together with LGV, will provide support for the future development of the remaining sites into country clubs. The Club Company continues LGV’s focus on leisure with existing investments including Vue Cinemas and Moliflor casinos, and successful former investments in Bourne Leisure, the caravan parks operator and the Unique Pub company.
Commenting on the deal, Bill Priestley, a director at LGV, said:
"Clubhaus has some of the best golf with health and fitness facilities in the country, with more than 30,000 members. The existing management team have done a first class job in the development of the clubs into the new country club format. We are looking forward to supporting the development of the remaining sites into country clubs and growing the business both organically and, potentially, through selective acquisitions."
Commenting on the deal, Charlie Parker, Managing Director of The Club Company said:
"We are pleased that the acquisition has now been completed and with the support and resources of LGV, Clubhaus can continue to grow and develop its high quality leisure facilities. We are convinced that the business will thrive under its new ownership with the benefits being felt by all of our members, customers and staff."
