Platinum Equity explores $2 billion-plus Club Car sale, sources say
Reuters
Published Mar 14, 2024 02:32PM ET
Updated Mar 14, 2024 03:31PM ET
By David Carnevali and Anirban Sen
(Reuters) - Private equity firm Platinum Equity has hired advisers to explore a sale of Club Car that could value the golf cart maker at more than $2 billion, including debt, people familiar with the matter said.
Platinum Equity is in the early stages of working with investment bank Goldman Sachs on the sale, which is expected to attract interest from buyout firms, the sources said.
Club Car generates 12-month earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $200 million, the sources added, requesting anonymity because the matter is confidential.
Platinum Equity and Goldman Sachs declined to comment.
Club Car produced its first golf carts with steering wheels in the late 1950s. They are used by the biggest organizations in the circuit such as the Professional Golfers' Association of America, and in tourism and other sectors to move people across short distances. The company also maintains and repairs its carts, working with over 350 distributors and dealers worldwide, its website showed.
Platinum Equity acquired Club Car from industrial components maker Ingersoll-Rand in 2021 for about $1.7 billion. One of its competitors, E-Z-GO, is owned by Textron (NYSE:TXT), maker of the Cessna business jet.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.