ClubCorp Says It Won't Pursue a Strategic Deal At This Time

By Ciara LinnaneMarketsMarketWatch Pulse

ClubCorp Holdings Inc. said Wednesday it has decided not to pursue a strategic transaction at this time, but instead will push ahead with a three-pronged strategy focused on organic growth, reinvention and acquisitions. The owner and operator of private golf and country clubs said it did not receive a proposal to purchase the entire company in talks it held with a wide range of parties. However, "the strategic review process has been useful in identifying opportunities and potential partners, and our Strategic Review Committee and Board will continue to consider all available alternatives to enhance value for shareholders," John Beckert, chairman of the board, said in a statement. Dallas-based ClubCorp said separately that Chief Executive Eric Affeldt is planning to retire as soon as the company has appointed a successor. Affeldt joined the company as CEO in late 2006. The company said it has acquired Oakhurst Golf & Country Club, marking its fourth deal in 2017 so far. The company will spend more than $1 million to upgrade the club and improve its golf course and aquatic center. The company also said its net loss declined 9.7% to to $7.5 million in the first quarter, while revenue rose 3% to $221.3 million. Shares were not yet active premarket, but are up about 8% in 2017, while the S&P 500 has gained 5%.

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