Golf Enterprises, Inc. Acquires Five Golf Clubs From Great American Clubs, Inc. And Affiliate Clubs
The transaction is being financed under Golf Enterprises’ $45 million revolving credit facility, which was established in conjunction with the Company’s successful initial public offering.
Robert H. Williams, President and Chief Executive Officer, said, “We are excited to add these five properties to our portfolio of golf courses as part of our continuing acquisition program. Most importantly, these acquisitions represent a significant advance in GEI’s strategy to be a leading consolidator in the golf course industry. Our experienced management team and financial strength provide us with the flexibility and competitive edge to pursue this acquisition strategy successfully. We believe these acquisitions demonstrate this point.”
Williams further stated, “Including the five courses acquired through this transaction, we purchased or leased nine golf courses in 1994. We currently are involved in active discussions with a number of other attractive acquisition candidates. We plan to selectively acquire and improve 30 to 50 courses over the next five years.”
Golf Enterprises, Inc.’s consolidated historical and pro forma results of operations for the nine months ended September 30, 1994 (pro forma presented as if the acquisition of these five courses had occurred on January 1, 1994) are as follows:
September 30, 1994
Historical Pro forma
EBITDA $ 8,575,000 $ 11,144,000
Income before extraordinary item $ 1,505,000 $ 2,221,000
Supplemental income per common
share before extraordinary item $ 0.53 $ 0.64
Author: Array