Private equity firm Platinum Equity is exploring a potential sale of Club Car, which could value the golf car manufacturer at over $2 billion.
According to Reuters.com, Platinum Equity has engaged advisers and is in the preliminary stages of working with Goldman Sachs to facilitate the sale, which is anticipated to draw interest from other buyout firms, sources said.
Club Car generates annual earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeding $200 million, the sources disclosed, requesting anonymity due to the confidential nature of the discussions.
Club Car, which began producing golf cars with steering wheels in the late 1950s, supplies major organizations like the Professional Golfers’ Association of America and operates in the tourism sector for short-distance transportation. The company also provides maintenance and repair services through a network of over 350 distributors and dealers worldwide, according to its website.
Platinum Equity acquired Club Car from industrial components manufacturer Ingersoll-Rand in 2021 for approximately $1.7 billion. One of its main competitors, E-Z-GO, is owned by Textron, the maker of the Cessna business jet.
