KKR is to acquire active lifestyle and hospitality company Bay Club from York Capital Management and minority investors, including JMA Ventures and Roxborough Group. Financial details of the transaction have not been disclosed.
Founded in 1977, Bay Club operates a collection of active lifestyle campuses, welcoming more than 50,000 members throughout California. The clubs are designed with innovative amenities to support the company’s focus on Fitness, Sports, Family and Hospitality.
Over the past several years, Bay Club has assembled an experienced management team – a blend of fitness, hospitality, technology, and finance veterans – and has grouped properties into campuses and offering its members a range of lifestyle amenities typically only found at country clubs and luxury resorts.
“At Bay Club, we are proud to have created California’s leading active lifestyle community. 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,” says Matthew Stevens, President and CEO of Bay Club.
“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,” said Nate Taylor, KKR Member and Head of KKR’s Americas Consumer Retail team. “We’re thrilled to be partnering with Matthew and the rest of Bay Club’s management team.”
KKR is making the investment through separately managed accounts and its balance sheet.
Bay Club is being advised by Morgan Stanley & Co as lead financial advisor, North Point Advisors as co-financial advisor, and Skadden, Arps, Slate, Meagher & Flom and Brownstein Hyatt Farber Schreck, as legal advisors. Simpson Thacher & Bartlett is serving as legal advisor to KKR.
