YOGAWORKS SETS TERMS FOR IPO; TO BECOME 1ST PUBLIC YOGA STUDIO

YogaWorks, which owns and operates 50 yoga studios within 6 U.S. markets, has plans to raise $65 Million by offering 5 Million shares between $12-$14. The yoga chain, which plans to list on the NASDAQ Global Market under the symbol YOGA, is not currently profitable, losing $9.4 Million in 2016. Net Revenues however, are growing, and the company says it’s been deferring revenue by converting members from a subscription based to class pass model.

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YOGAWORKS, A US YOGA STUDIO CHAIN, SETS TERMS FOR $65 MILLION IPO

Howie Long-Short opines: Dare I say it’s a stretch to call this a hot IPO? Oh God. Sorry. Really though, a yoga studio roll-up sounds even worse than a golf club roll-up (MYCC). This one smells.

Fan Marino says: I’m not convinced stretching can be considered a workout. If you have to crank up the heat to 95 degrees to work up a sweat, are you actually working up a sweat?

CLUBCORP ACQUIRED BY P.E. FIRM FOR $1.1 BILLION

ClubCorp Holdings (MYCC), the owner/operator of over 200 private golf & country clubs, has been acquired for $1.1 Billion by Apollo Global Management, a P.E. firm. Apollo has agreed to pay $17.12 per share in cash, nearly a 31% premium over the July 7th closing price. The deal, expected to close in Q4 ’17, comes just 3 months after Longtime CEO Eric Affeldt announced his retirement and the firm stated it would not be seeking a sale, despite mounting debt and lagging memberships.

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Dallas-based ClubCorp agrees to be bought by private equity giant for $1.1 billion

Howie Long-Short opines: Golf course roll-up strategy, really? Never bought this one. Less than fantastic return for any long-term MYCC shareholders participating in the $14 IPO in 2013. Fortunately for them, Apollo continues the trend of buying out companies flagged for questionable accounting or business models. Good luck.

Adam Dow-Jones comments: Oh boy what a saga this was, between activists on both long and short side. Hardly a great return for IPO shareholders but a nice opportunity for those able to value these hard assets, geared to experiential consumption.

Fan Marino says: If you believe Golf is on the upswing, Acushnet Holdings Corp (GOLF), the owner of Titleist, and Callaway Golf (ELY), both remain public.