Platinum Equity will acquire Club Car, Ingersoll Rand’s golf cart business, for $1.7 billion.
The pumps and compressor manufacturer acquired its golf cart division in 1995 but is going through a series of divestitures to pay off debt and narrow its portfolio. Earlier this month, it sold a majority stake in its high-pressure solutions business for $300 million.
Platinum Equity, run by Detroit Pistons’ owner Tom Gores, is taking just a small risk in the buyout, as golf saw a 6% decline in revenue last year, per IBISWorld. Club Car’s president doesn’t see it as negative.
“Demand for electric vehicles across many product platforms and geographies is at an all-time high,” said president Mark Wagner. “Golf remains a very stable, healthy business, while our consumer and commercial markets are rapidly growing around the world.”
Wagner will continue to lead the company following the merger.
Platinum Equity has acquired businesses from Johnson & Johnson, Office Depot, Wyndham Worldwide Corporation, and others in recent years.
“Platinum’s experience and global resources will be vital to helping us continue that growth and to achieving our long-term ambitions,” said Wagner.
The firm has more than $25 billion of assets under management and expects to close the Club Car deal by Q3 2021.