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The Bay Club Company Walnut Creek, California Photo courtesy The Bay Club Company.
This Walnut Creek, California, club is one of the new clubs now under The Bay Club Company.

The Bay Club Company Acquires Five ClubSport Locations from Leisure Sports, Expands into Oregon

The Bay Club Company has taken ownership of four ClubSport facilities in California and one in Portland, Oregon, all of which will eventually transition to Bay Club branding. This news comes four months after investment firm KKR acquired The Bay Club Company.

The Bay Club Company, San Francisco, has acquired five ClubSport facilities from Leisure Sports, Inc., Pleasanton, California, in addition to striking a partnership that will see both groups co-develop future properties, the companies announced Nov. 13. The companies did not release details on a purchase price.

Four of the acquired Leisure Sports' ClubSport facilities are in California in the cities of Walnut Creek, Danville, Pleasanton and Fremont. The fifth purchased ClubSport location is in Portland, Oregon, marking Bay Club's first foray into the Portland market.

Each club will eventually transition to Bay Club branding, according to a media release from the companies. The Bay Club Company now operates 26 properties across California and Oregon.

The acquisitions occur four months after The Bay Club Company announced it had been acquired by New York-based investment firm KKR, whose capital was expected to give the company leverage to expand into new markets. It also follows the May acquisition of Broadway Tennis Center in Burlingame, California; the 2017 acquisition of Manhattan Country Club in Southern California; and the 2016 acquisition of Boulder Ridge Golf Club and Fairbanks Ranch Country Club.

“We are honored with the opportunity to collaborate with the team at Leisure Sports Inc. and are committed to bringing the combined value and benefits of our two brands to the members and employees throughout the West Coast,” Matthew Stevens, president and CEO of The Bay Club Company, said in the release. “Club West Collection and Executive Club offerings will give members expanded access to our unique four-quadrant model—focused on fitness, sports, family and hospitality.”

Leisure Sports President Steve Gilmour said in the release: “Finding a partnership that has a rich tradition and focus on fitness and hospitality is very exciting for our team of associates as well as our members and guests. The ability for our two companies to collaborate on future development and innovate in both fitness and hospitality is a great marriage of our history.”

Leisure Sports will continue to own and operate the Renaissance ClubSport in Aliso Viejo and will focus on the roll-out of its Formula3 and REV32 studio brands, opening a new studio in Lafayette, California, in early 2019. It also is developing a social club in downtown San Jose. The company will continue to provide design consulting services for stand-alone fitness centers and corporate and hotel fitness centers. 

Simpson Thacher & Bartlett and Brownstein Hyatt Farber Schreck LLP served as legal advisors to The Bay Club Company, while Hanson Bridgett, LLP worked with Leisure Sports.

The Bay Club Company ranked No. 8 on Club Industry's 2018 Top 100 Clubs list, reporting $235.35 million in 2017 revenue, a 4 percent increase from the previous year.

Leisure Sports ranked No. 16 on the same list, with $108.92 million in 2017 revenue. This represented an increase of 2.4 percent from 2016.

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