KKR’s Acquisition of The Bay Club Company


Bay Club is being advised by Morgan Stanley & Co. LLC as lead financial advisor, North Point Advisors LLC as co-financial advisor, and Skadden, Arps, Slate, Meagher & Flom and Brownstein Hyatt Farber Schreck, LLP as legal advisors. Simpson Thacher & Bartlett is serving as legal advisor to KKR.

KKR, a leading global investment firm, and The Bay Club Company (“Bay Club”), a premier active lifestyle and hospitality company, signed a definitive agreement under which KKR will acquire Bay Club from York Capital Management and minority investors, including JMA Ventures and Roxborough Group. Financial details of the transaction were not 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.

Bay Club is recognized as the pioneer of the urban sports resort. Over the past several years, Bay Club has assembled an experienced management team—a blend of fitness, hospitality, technology, and finance veterans. Under the direction of this team, Bay Club was given the opportunity to evolve beyond the fitness industry. As a result, the Company entered the realm of hospitality by grouping complementary properties into campuses and offering its members a range of high-end lifestyle amenities typically only found at country clubs and luxury resorts.

The Simpson Thacher team includes Marni Lerner, Ravi Purushotham, Donovan Westbrook and Seth Lowinger (M&A); Scott Kobak and Krista McManus (Real Estate); Tristan Brown and Alex Ellebracht (ECEB); Lori Lesser (IP); Adeeb Fadil and Noreen Lavan (Environmental); Adam Shapiro, Lauren Sullivan and Remy Denner (Banking and Credit); Rob Holo, Sophie Staples and Sarah Julian Duffy (Tax); and Peter Guryan, Kelly Karapetyan and Richard Jamgochian (Antitrust).

Involved fees earner: Marni Lerner – Simpson Thacher & Bartlett; Ravi Purushotham – Simpson Thacher & Bartlett; Donovan Westbrook – Simpson Thacher & Bartlett; Seth Lowinger – Simpson Thacher & Bartlett; Scott Kobak – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Tristan Brown – Simpson Thacher & Bartlett; Alexander Ellebracht – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Noreen Lavan – Simpson Thacher & Bartlett; Adam Shapiro – Simpson Thacher & Bartlett; Lauren Sullivan – Simpson Thacher & Bartlett; Remy Denner – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Sarah Julian Duffy – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Richard Jamgochian – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: KKR;

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Author: Ambrogio Visconti