Platinum Equity entered into a definitive agreement to acquire Club Car from Ingersoll Rand in a transaction valued at approximately $1.7 billion. The acquisition, subject to standard closing conditions, is expected to be completed by Q3/21. BofA Securities will lead the debt financing for Platinum Equity and Club Car in connection with the transaction.

Founded in 1958 and headquartered in Augusta, GA, Club Car is a manufacturer of golf cars, utility, personal transportation and other low-speed vehicles, including all-electric models, and related aftermarket parts and services. Ingersoll Rand has owned the business since 1995.

“Club Car is an iconic golf brand that for more than 60 years has set the industry standard for quality and innovation,” Tom Gores, chairman and CEO of Platinum Equity, said. “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.”

“We are grateful for the dedication and commitment Club Car employees have had over the years to make their business a success,” Vicente Reynal, CEO of Ingersoll Rand, said. “We believe Platinum is well equipped to ensure a seamless transition and is the right partner to help Club Car achieve its next phase of growth and evolution.”

In addition to its fleet of golf cars, Club Car manufactures a line of products for consumers and commercial customers, including hotels and resorts, college campuses, airlines, theme parks and rental companies.

“Demand for electric vehicles across many product platforms and geographies is at an all-time high,” Mark Wagner, who will continue to lead Club Car as president under Platinum Equity’s ownership, said. “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.”

“Club Car has outstanding leadership, an entrepreneurial culture and a very close connection to its customer base, which has helped the company stay in front of new trends and create new market opportunities,” Jacob Kotzubei, a partner at Platinum Equity, said. “We look forward to working with Mark and the management team to continue investing in innovation, product development and international expansion.”

“Club Car is an attractive platform for strategic partnerships and prospective add-on acquisitions that can help further extend its reach into new geographies or adjacent markets,” Matt Louie, managing director of Platinum Equity, said. “We have a lot of experience helping companies grow and will put our M&A resources to work on the company’s behalf.”

Platinum Equity has 25 years of experience acquiring and operating businesses that have been part of large corporate entities. In recent years, the firm acquired businesses from Ball Corporation, Emerson Electric, Johnson & Johnson, Newell Brands, Office Depot, Pitney Bowes and Wyndham Worldwide Corporation, among others.

Credit Suisse and J.P. Morgan Securities are serving as financial advisors to Platinum Equity on the acquisition of Club Car and Morgan Lewis is serving as Platinum Equity’s legal counsel. Willkie Farr is providing financing counsel to Platinum Equity on the transaction.

Goldman Sachs is serving as exclusive financial advisor to Ingersoll Rand and Simpson, Thacher & Bartlett is serving as its legal counsel.