Global investment firm KKR, New York, announced July 27 it had entered into a definitive agreement to acquire The Bay Club Company, San Francisco, from York Capital Management and its minority investors, including JMA Ventures and Roxborough Group. The financial details of the transaction were not publicly disclosed.
“At Bay Club, we are proud to have created California’s leading active lifestyle community," Matthew Stevens, president and CEO of The Bay Club Company, said in a media release. "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."
Since 2015, The Bay Club Company has expanded to other markets outside of San Francisco, including Los Angeles, San Diego and San Jose. The 41-year-old company currently operates 24 facilities across California, claiming more than 50,000 members.
“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,” Nate Taylor, KKR member and head of KKR’s Americas Consumer Retail team, said in the release. “We’re thrilled to be partnering with Matthew and the rest of Bay Club’s management team.”
KKR manages multiple asset classes including credit, energy, infrastructure, real estate and private equity, the release said. The firm invests its own capital, along with capital it manages for various fund investors. As of March 31, 2018, KKR manages $176 billion in assets, according to its website.
In the transaction, The Bay Club Company was advised by Morgan Stanley & Co., North Point Advisors, Skadden, Arps, Slate, Meagher & Flom, and Brownstein Hyatt Farber Schreck. KKR was advised by Simpson, Thacher & Bartlett.
The Bay Club Company ranked No. 8 on Club Industry's 2017 Top 100 Clubs list, reporting $228.75 million in 2016 revenue, a 4.1 percent increase from the previous year.