Golf chain founders bag £30m from sale of shops

Two golfing enthusiasts today banked a windfall of about £30m after selling the business they have built up over the past three decades to LDC, Lloyds TSB's private equity arm.

Two golfing enthusiasts today banked a windfall of about £30m after selling the business they have built up over the past three decades to LDC, Lloyds TSB's private equity arm.

Howard Bilton and Tony Norton have sold a majority stake in American Golf Discount Centre, a 61-strong chain of golf equipment shops, to LDC in a deal understood to be worth up to £40m. The pair will retain a 15 per cent shareholding in the business, which started trading from pro shops at golf courses in the North-west in the late Seventies.

Jonathan Fellows, the former finance director of the Bon Marché discount retail chain, has been appointed to run the group, which has shops from Inverness to Plymouth. The management team is taking a 35 per cent stake in the business, with LDC owning the remaining 50 per cent. Tim Brookes, the chairman of the photographic retailer Jessops, will chair the business.

Mr Bilton and Mr Norton, who will both step down from the board, bought out Howard's brother five years ago. Commenting on their decision to sell, Mr Norton said: "We have been considering our options for some time, seeking to realise some of the shareholder value we have built up in the business and to reduce our day to day involvement without relinquishing our interest totally." The pair will still advise the business on a consultancy basis.

Mr Fellows, who helped initiate the sale of Bon Marché to Peacocks two years ago, said there was scope to almost double the size of the golfing chain. "American Golf is already the UK's leading golf specialist, reflecting a unique combination of expert professional advice and services, the most comprehensive range of golf equipment and accessories and an exceptional value proposition," he said. The new owners plan to open 25 new stores over the next five years, including six in 2005.

American Golf had operating profits of £6.7m in the year to 26 January on sales that rose 21 per cent to £63.7m.

Martin Draper, a director of LDC, said: "With a trading format which clearly appeals to its customers, and with our provision of additional financial resources, we can work together to achieve a significant accelerating of American Golf's development."