Landmark California company bridges gap between fitness and
NEW YORK & SAN FRANCISCO–(BUSINESS WIRE)–
KKR, a leading global investment firm, and The Bay Club Company (“Bay
Club”), a premier active lifestyle and hospitality company, today
announced the signing of a definitive agreement under which KKR will
acquire Bay Club from York Capital Management and minority investors,
including JMA Ventures and Roxborough Group. Financial details of the
transaction were not disclosed.
Founded in 1977, Bay Club operates a collection of active lifestyle
campuses, welcoming more than 50,000 members throughout California. The
clubs are designed with innovative amenities to support the company’s
focus on Fitness, Sports, Family and Hospitality.
Bay Club is recognized as the pioneer of the urban sports resort. Over
the past several years, Bay Club has assembled an experienced management
team—a blend of fitness, hospitality, technology, and finance veterans.
Under the direction of this team, Bay Club was given the opportunity to
evolve beyond the fitness industry. As a result, the Company entered the
realm of hospitality by grouping complementary properties into campuses
and offering its members a range of high-end lifestyle amenities
typically only found at country clubs and luxury resorts.
“At Bay Club, we are proud to have created California’s leading active
lifestyle community. In partnering with KKR, we are excited to build
even further on what we’ve accomplished thus far and bring our unique
offering to even more communities across the country,” said Matthew
Stevens, President and CEO of Bay Club.
“Bay Club’s pioneering and differentiated model is one of the few scaled
platforms in a large and highly fragmented health and wellness industry,
where members can find options that meet all of their – and their
families’ – needs,” said Nate Taylor, KKR Member and Head of KKR’s
Americas Consumer Retail team. “We’re thrilled to be partnering with
Matthew and the rest of Bay Club’s management team.”
KKR is making the investment through separately managed accounts and its
Bay Club is being advised by Morgan Stanley & Co. LLC as lead financial
advisor, North Point Advisors LLC as co-financial advisor, and Skadden,
Arps, Slate, Meagher & Flom and Brownstein Hyatt Farber Schreck, LLP as
legal advisors. Simpson Thacher & Bartlett is serving as legal advisor
About Bay Club
Headquartered in San Francisco, California,
The Bay Club Company is an active lifestyle and hospitality company with
a network of experiential campuses that welcome more than 50,000
members. The company operates across seven California campuses in the
San Francisco, San Jose, Los Angeles and San Diego markets, employing
more than 4,000 people. For more information on The Bay Club Company,
please visit BayClubs.com
or its blog, OneLombard.com.
The Bay Club Company is also on Facebook and Instagram.
KKR is a leading global investment firm that
manages multiple alternative asset classes, including private equity,
energy, infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website
and on Twitter @KKR_Co.
About York Capital Management
York Capital Management is a
global private investment firm that was established in 1991. The firm
manages approximately $18 billion in assets across public and private
investment strategies, including its private equity platform, the York
Special Opportunities Fund, which owns Bay Club. York Capital employs
approximately 60 investment professionals and 200 total employees
globally, located primarily in New York, London, and Hong Kong.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005692/en/
Annie Appel, 415-901-9351
Huller or Cara Major, 212-750-8300
Gasthalter & Co. for York Capital Management
Garnick/Kevin Fitzgerald, 212-257-4170