RBS agrees debt deal with American Golf25th September, 2012 by Tania Longmire
The largest retailer of golf equipment in Europe has agreed a £20m deal to refinance debt that it owes to its bank.
The move is set to enable Warrington-based American Golf to achieve a target of opening six new stores per year. The company, which currently employs 700 people at 92 outlets across the UK and Ireland, saw revenues for the 12 months to the end of January rise from £86.1m in 2011 to £108.1m.
The announcement is the culmination of several months of transition for American Golf.
Last year US private equity house Sun European bought a majority stake in the company, while this summer it appointed ex-Habitat boss Kevin Styles as its new chief executive. Since then he has brought in a number of new people to run the company and transformed its distribution channels.
Kevin Styles said: “We are delighted to have finalised this transaction which provides us with the financial certainty that we need to expand our store network and online presence in the popular and rapidly growing golf industry. We are grateful for the support from Royal Bank of Scotland which helps us to enhance our long-term growth strategy and strengthen our market leading position.”
Craig Cheetham, relationship director at RBS Corporate, added: “We have enjoyed a long and successful relationship with American Golf stretching back to 1987 and are delighted to have been able to support them in this latest transaction. We look forward to being part of the company’s continued growth.”