Close Brothers Private Equity (“CBPE”) today announced the £26m sale of European Golf Brands (“EGB”).

CBPE backed European Golf Brands in 2000 when it acquired the electric golf trolley brands PowaKaddy and Hill Billy. The management team was led by Mike Snapes (Chairman), John deGraft-Johnson (CEO) and David Wells (Sales Director).

PowaKaddy was initially a turnaround, but management have rapidly improved and built the business, taking profits from under £1m to over £4m by the time of sale.

While CBPE have been investors, the management team have made substantial advances in the business product range and brand positioning. Two new electric trolleys have been launched including a robotic, remote controlled version.

The business has also listened to its image conscious customers and developed the design of its products to match their aspirations and widen their appeal such that they are now popular amongst golfers of all ages.

This deal provides an exit for CBPE and for
Chairman Mike Snapes. The other senior members of the team will continue in the business.

The new business plan developed by the EGB team involves the globalisation of the brands and a stronger thrust into golf’s largest market place – the USA. The future looks extremely bright for EGB, the demographics of golf favour it, the new product pipeline is full and there is a long way to go in some key markets.

Richard Lott of CBPE said: “This has been a really first class investment for us and a terrific example of what a clear thinking and committed management team can do. The team set out their stall at the start - they wanted to establish PowaKaddy and Hill Billy as leaders in their fields, to increase profitability and create an attractive working environment. All of these goals have been achieved: customer service levels are strong, the company has established itself as a leading employer and I am pleased to say that as investors, we are delighted with the return achieved. Everyone at CBPE certainly wishes the whole business the best of success in the future.”

Mike Snapes of EGB added: “ We set out not only to build value but also to establish EGB as a leading and influential company within golf. I am proud to say we achieved our goals.

As a management team we found our partnership
with Close both highly effective and enjoyable. We benefited greatly from their wide range of business knowledge and their very pragmatic style.”

Contact:

Close Brothers Private Equity
Richard Lott: 00 44 207 065 1121

This press release has been issued by Close Brothers Private Equity.