Case Studies

In May 2004, LGV completed the public-to-private of Clubhaus plc (now renamed The Club Company), the UK’s leading golf and country club operator, for £57m. The public-to-private was effected through a public offer and a scheme of arrangement and the deal was structured to ensure the support of both bondholders and shareholders. On 26 May the offer was declared unconditional. Senior debt was provided by the existing banker, Barclays.

The Club Company operates 11 golf and country clubs, including the Castle Royle club, near Maidenhead, Nizels, near Sevenoaks, and The Tytherington in Macclesfield. 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 and LGV has earmarked further funding to support these developments alongside additional bank support from Barclays.

There were a number of key defining characteristics that made The Club Company an attractive investment to LGV:

• The Club Company derives the majority of its revenues from the health & fitness side of the business, however the combination with golf, family orientation and older membership helps the business to enjoy market leading attrition rates.
  
  
• The clubs are predominantly freehold or long leasehold. As a result The Club Company benefits from the traditional long-term asset appreciation that may accrue at its sites.
  
  
• As The Club Company operates member orientated golf clubs, it tends to generate a higher proportion of golfing revenue from subscriptions compared to more seasonal green fees.
  

The Club Company will focus on developing the existing golf-only clubs and will also look to make selective acquisitions of single sites or small groups of sites.

The Club Company continues LGV´s focus on leisure with existing investments including Vue Cinemas and Tragus, and successful former investments in Bourne Leisure, the caravan parks operator, and the Unique Pub Company.

LGV completed the sale of The Club Company in June 2006. Please click here for further details.