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Lloyds in full swing with golf swoop

Sarah Walters
7/ 2/2005

THE wind was certainly blowing in the right direction for Howard Bilton when he landed '40m for his store chain American Golf Discount last August.

He and his business partner, Tony Norton, netted around '21m and '18m respectively when they sold off a 50 per cent share of the chain to private equity firm Lloyds Development Capital and a further 35 per cent to a new management team.

The pair maintained a 15 per cent stake in the golfing group and took on new consultancy roles in the deal. Already a fan of the sport, Howard set up his first golf shop in the late 1970s with his brother, Robert, in a '36 shed at the Ashton-in-Makerfield golf club where they worked.

Howard and Robert soon expanded and bought their first store in Warrington in 1981, calling it American Golf Discount to reflect the choice and value they were offing to enthusiasts.

With six shops opening per year, the chain soon became Europe's leading golf store. Tony Norton bought into the firm in 1981, and Robert sold his share 16 years later.

Tony said: "Lloyds Development Capital has got a successful company with the capacity to treble earnings. The management buy-out team and staff get access to funding to grow the business quickly and the shareholders get a good return for their effort in building the business."

Last year, the firm turned over '63.7m, increasing sales by 21 per cent and boosting operating profits to '6.7m. American Golf Discount is now 61-stores strong and employs 400 staff.

The new management team, led by former Bon Marche boss Jonathan Fellows, is embarking on a major expansion project at the firm, with at least 25 additional stores planned over the next five years.

Debt provider was Royal Bank of Scotland. Advisers included, KPMG, Brabners Chaffe Street and Hammonds.