Information on the Target

The Club Company is recognized as the leading country club operator in the UK, managing a portfolio of thirteen country clubs primarily located in central and southern England. The company boasts a membership base of over 40,000 individuals and provides a diverse range of high-quality amenities, including championship-standard golf courses, state-of-the-art health and fitness facilities, swimming pools, tennis courts, as well as dining options such as bars and restaurants, and accommodation services.

Under the leadership of CEO Thierry Delsol, who has been with the company since 2005, and CFO Paul Stephens, The Club Company has established itself as a premier destination for leisure and recreation. The recent appointment of Steve Burns, CEO of Hollywood Bowl plc, as non-executive Chairman further strengthens the company's governance and strategic direction.

Industry Overview in the UK

The UK leisure and recreation industry represents a significant sector of the economy, with a growing number of individuals investing time and resources into health and wellness activities. This has resulted in an increasing demand for country clubs that offer comprehensive fitness and recreational facilities.

Country clubs in the UK are experiencing a renaissance, driven by a shift in consumer preferences towards holistic health and lifestyle offerings. With an emphasis on family-friendly environments and diverse leisure activities, these clubs are becoming increasingly appealing to a wide array of demographics.

Additionally, the increasing trend of memberships and community engagement within these clubs highlights the evolving nature of consumer behavior, where social interaction, fitness, and leisure converge. This evolution necessitates constant investment and innovation, positioning established operators at the forefront of industry growth.

In this competitive landscape, companies like The Club Company are strategically positioned. By enhancing their existing facilities and exploring new acquisitions, they are poised to capture an expanding market share within the leisure sector.

The Rationale Behind the Deal

The acquisition of The Club Company by Epiris Fund II aligns with the firm’s strategy to invest in established, cash-generative businesses that possess exceptional management teams. Bill Priestley, Chief Investment Partner at Epiris, expressed enthusiasm for this investment opportunity, underscoring the potential for operational improvements and growth through strategic partnerships.

This deal not only provides Epiris with a controlling interest in a prestigious leisure brand but also opens avenues for significant capital investment aimed at facility upgrades and expansion of the club network, thereby enhancing overall member experience.

Information About the Investor

Epiris LLP is a highly regarded private equity firm recognized for its successful investments across various sectors. Focused primarily on UK-centric businesses with an enterprise value of £75 million to £500 million, Epiris typically deploys equity investments ranging from £40 million to £150 million.

Since its inception, Epiris has demonstrated a strong track record, having raised substantial funds and delivered impressive returns. With experience from Epiris Fund I and the new institutional private equity fund currently being brought to market, the firm is well-equipped to drive the next phase of growth for The Club Company.

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From an analytical perspective, the acquisition of The Club Company by Epiris Fund II is seen as a potentially lucrative investment. The decision to invest in a well-established and cash-generating business indicates a calculated approach that capitalizes on existing strengths while fostering operational enhancements.

The Club Company's robust membership base and diverse facility offerings position it favorably to weather economic fluctuations and attract new members. The strategic initiative to enhance existing clubs and explore new acquisitions suggests that Epiris is not only focused on immediate returns but also on sustainable long-term growth.

Furthermore, the new leadership dynamics at The Club Company, especially with the involvement of experienced figures like Steve Burns, promises additional insights and innovation, further solidifying the strategic direction of the company. With the expected investments in facilities and customer experience, the potential for increased member retention and acquisition remains high.

Overall, this deal holds promise for both Epiris and The Club Company, and, if executed effectively, is likely to yield favorable results in the expanding leisure and fitness market.

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