KSL Capital Partners to Acquire ClubCorp

Private equity firm KSL Capital Partners has agreed to buy Dallas-based ClubCorp Inc. for $1.8 billion. ClubCorp owns 168 clubs and resorts across the country, including Barton Creek Resort & Spa in Austin, The Homestead, Mission Hills Country Club, and Pinehurst Resort. Pinehurst is not included in the sale. Instead, the company's primary owner will take 100 percent control of Pinehurst.

KSL Capital Partners' independent management company, KSL Resorts, currently manages three of the premier resort destinations in California, including the historic Hotel del Coronado in San Diego, renowned La Costa Resort and Spa in Carlsbad near San Diego, and Rancho Las Palmas Resort & Spa in Rancho Mirage.

KSL Capital, which invests in travel and leisure businesses, closed a new $1 billion-plus fund in September. 'ClubCorp fits perfectly into the business sectors that our private equity fund targets,' Michael Shannon, managing director of KSL Capital, said in a news release announcing the sale.

'This sale provides the desired liquidity for ClubCorp shareholders,' John Beckert, ClubCorp CEO, said in the release. ClubCorp, which employs 18,000 people, posted gross revenue of $1.03 billion in 2005, up 9 percent from the previous year. The firm also posted a $70.8 million profit in 2005 after notching $279 million in losses the four previous years.

KSL and ClubCorp have committed to a combined $150 million in capital investments over the next two years and to continuing to reinvest in current ClubCorp properties and expanding depending on market needs.