LDC exits American Golf in SBO

Amy King
19 December 2011

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LDC has sold its majority shareholding in golfing retailer American Golf to Sun European Partners. The deal value was confirmed to be between ТЃ50-60m.

The investment will support further expansion of American Golf's market presence and matches Sun European Partners' experience in the retail sector. The private equity firm currently counts a number of European retail companies operating on and offline among its portfolio and was drawn to American Golf's strong management and growth potential.

Debt
The transaction was all-equity funded.

Previous funding
In 2004, LDC backed the MBO of American Golf, acquiring a majority interest for an undisclosed amount with the intention of expanding its retail store network. RBS provided debt to support the transaction.

Company
American Golf is an online and in-store retailer of golf equipment and accessories. Under LDC's management, its store network has grown from 50 to 88 stores across the UK and Northern Ireland. Last year, the company completed the acquisition of SW Golf Limited, operator of online golfing retailer onlinegolf.co.uk, which has increased online sales to 15% of revenues.

Last year, sales increased by 20% to £86.6m and have continued to improve over the current financial year. Profits have increased by 250% since 2010 with sales to overseas markets accounting for 30% of online revenue.

People
Robert and Howard Bilton are co-founders of American Golf; Nick Wood is CEO of the company. Philippe Neuschaefer is vice president of Sun European Partners and led the transaction for the company. Chris Hurley is UK portfolio managing director at LDC.

Advisers
Equity – DLA (Legal).
Company – Rothschild, Andrew Thomas (Corporate finance); Gateley (Legal).