On Monday, April 12th, 2021 Platinum Equity officially agreed to buy Club Car from Ingersoll Rand for $1.7 billion. Find out what this means for the luxury golf car brand, and discover who Platinum Equity is down below.
Brief History of Club Car
Established in 1958, Club Car started out manufacturing golf cars. At the time, this feat was unheard of. As a result, Club Car ended up having a strong monopoly in the market. To address this issue, EZ Go was created two decades later.
From there, the aforementioned golf cart manufacturer bought the Club Car brand, and marketed the acquired business as a viable LSV competitor. Then in 1995, Ingersoll Rand purchased Club Car. The new owners leveraged the factories of the golf car manufacturer by combining them with the manufacturing process utilized by Bobcat.
By doing so, the multifaceted company was able to start producing a wide variety of low speed vehicles, rather than just golf cars. Although this venture was successful, Ingersoll Rand has opted to sell the brand to Platinum Equity.
According to Tom Gores, Platinum Equity CEO, “Club Car is an iconic golf brand that for more than 60 years has set the industry standard for quality and innovation”. Gores went on to say “We appreciate Ingersoll Rand’s confidence in our ability to build on that legacy and support Club Car’s continued growth and expansion as a standalone company.”
Who is Platinum Equity?
Platinum Equity was founded back in 1995 by Tom Gores. At the time, the aforementioned CEO wanted to create a global investment firm that specializes in acquisitions, mergers, and operations. Since then, Platinum Equity has completed roughly 400 acquisitions, acquired over $25 billion in assets, and is currently operating 40 businesses.
In a statement issued by Vicente Reynal, Ingersoll Rand CEO, “We are grateful for the dedication and commitment Club Car employees have had over the years to make their business a success”, and that “We believe Platinum … is the right partner to help Club Car achieve its next phase of growth and evolution.”
To ensure the latter business venture is successful, Mark Wagner, Club Car President, is to remain in position under Platinum Equity ownership. When asked about the acquisition, Wagner stated that “Golf remains a very stable, healthy business while our consumer and commercial markets are rapidly growing around the world. As our product line and geographic reach have expanded, so has the complexity of our business. Platinum’s experience and global resources will be vital to helping us continue that growth and to achieving our long-term ambitions.”
What This Means For Club Car
For all intents and purposes, the Platinum Equity acquisition appears to be a profitable step for the luxury golf car manufacturer. If everything goes as planned, Platinum Equity may be able to expand the Club Car brand presence, while advancing the technological feats the golf car manufacturer has already achieved.
The Club Car acquisition is to be finalized during the 3rd quarter of 2021.
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