ClubCorp To Acquire Atlanta-based Sequoia Golf

(RTTNews) - ClubCorp (MYCC) said that it has signed an agreement to acquire the Atlanta-based Sequoia Golf. ClubCorp will pay $265 million for Sequoia Golf before anticipated transaction expenses.

ClubCorp noted that the acquisition of Sequoia Golf will expand ClubCorp's portfolio of private clubs to 209 from 159 today.

ClubCorp intends to finance this acquisition through existing liquidity and incremental term loan proceeds. ClubCorp does not anticipate issuing any additional equity to close this transaction.

The transaction is subject to customary closing conditions, and is expected to close during ClubCorp's fiscal fourth quarter.

Sequoia Golf, founded in 2002 by Joe Guerra in partnership with Parthenon Capital Partners, owns and operates 50 clubs with significant concentrations in Atlanta and Houston and positions in Denver and Chicago markets. The Sequoia Golf portfolio consists of 30 owned, three leased and 17 managed properties. The addition of Sequoia Golf will increase ClubCorp's golf and country club portfolio to 157 from 108 today, and raises ClubCorp's business, sports and alumni clubs by one to 52.

Sequoia Golf will also add over 7,000 acres of fee simple real estate and over 27,000 memberships. Combined, ClubCorp will own over 25,000 acres of fee simple real estate and have approximately 180,000 individual memberships serving more than 430,000 members.