Equity investor LDC has today announced it has agreed to sell its stake in sports retailer American Golf to Sun European Partners for an undisclosed sum.

LDC, the private equity arm of Lloyds Banking Group, was said to be looking to offload the chain for up to £80m.

It took a majority shareholding when it backed the management buyout of Warrington-based American Golf, which claims to be Europe's largest golf retailer, in 2004.

American Golf chief executive Nick Wood said: “LDC has been a hugely supportive, long-term investment partner over the last eight years. Its commitment has enabled us to build a market leading business with a highly scalable platform for growth.

“This is an exciting time for everyone at the business as it embarks on its next phase of growth. Sun’s experience and sector knowledge will be extremely valuable in driving our expansion into 2012 and beyond.”

Since 2004 American Golf has increased its number of stores from 50 to 88 and acquired SW Golf, which trades as onlinegolf.co.uk, which has driven internet sales to 15 per cent of revenues and helped increase profits by 250 per cent since 2010.

In the year to January, 2011, American Golf increased total sales by 20 per cent to £86.6m, helped by the opening of new seven stores and strong growth in its internet business.

And like for like sales in the current period have continued to rise.

Sales to overseas markets represent over 30 per cent of online sales, while profits have increased 250 per cent since 2010.

Sun European Partners is the European adviser to Sun Capital Partners.

Philippe Neuschaefer, vice president at Sun European Partners, said: “American Golf is a niche retailer with an exciting product portfolio.

“The company is performing well and with our extensive experience in the retail sector, American Golf represents a significant opportunity for sustainable growth.”

LDC's UK portfolio managing director Chris Hurley said: “American Golf has made excellent progress with its growth strategy against one of the most challenging retail climates for several years, thanks to a clear proposition, highly capable management team, first-class store execution and growing online platform.

“Under the leadership of Nick Wood, the business has accelerated both revenue and profits growth significantly over the last four years, and is now well placed to continue driving market share.”

A team from Rothschild, led by Andrew Thomas, advised the shareholders.

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