Thu, 16 Apr 2015 | BUSINESS SALE
Virgin Active has completed its sale to the private-equity division of financial group, Brait.
Backed by billionaire South African Christo Weise, Brait is set to pay £682 million for an 80 per cent stake of Virgin Active. The Virgin Group will retain 20 per cent. When the firm's debt is included, the gym chain's total value from the sale figures is £1.3 billion.
The sale to a South African-backed buyer is an interesting one given the company's popularity in the country. Of its 1.3 million gym members around the world, some 720,000 are in South Africa thanks to the brand's popularity as a symbol of aspiration.
Richard Branson commented: “Virgin Active is a business that we are proud to have been associated with from the very beginning, over 15 years ago.
“While today’s transaction is testament to the huge amount the business has already achieved, we believe that its future is more exciting. We are delighted that we will continue to play a part in this.”
Virgin Group first sold a majority stake in its gym business back in 2002 to Bridgepoint but the firm bought it back three years later. Its remained the focus of investment when in 2011 a 51 per cent stake was sold to rival private-equity firm CVC. This latest sale will see CVC exit completely, while the Virgin Group's stake will drop from 46 per cent to 20 per cent.
The news comes after Virgin Active had been exploring an initial public offering in Johannesburg for this summer. However, IPO plans from Virgin Group's perspective have now clearly been scrapped, but Brait retains the option to explore this avenue in future should it wish.
______________________________________________________________________
Related information:
View the latest businesses for sale
Seeking an acquirer / strategic partner for this long-established national engineering contractor providing an extensive range of solutions, including specialised fabrication, pipework installation, steelwork and mechanical equipment.
Our client, with a legacy spanning over 35 years, has crafted an exceptional brand and market-leading business in the world of organic wines. Now, due to retirement plans, they are seeking the perfect successor to carry forward their legacy.
Over the past 15+ years, our client has built a successful business providing a range of commercial cleaning and soft services to its contracted and growing client base. Working predominantly within the commercial and industrial sector, our client ma...
02
|
Apr
|
CheckFire Group buys long-standing partner PJ Fire | BUSINESS SALE
CheckFire Group, the South Wales-based fire safety equipment...
02
|
Apr
|
Listed group Spire Healthcare buys occupational health peer Acorn | BUSINESS SALE
Listed group Spire Healthcare has bought peer Acorn Occupati...
01
|
Apr
|
Law firms merge to create regional powerhouse | MERGER
A Lincolnshire and Yorkshire law firm have announced they ar...
08
|
Oct
|
2018: Top Track 250 | BUSINESS NEWS
It's often difficult for businesses to achieve growth o...
15
|
Jun
|
Virgin Active sells 35 UK fitness clubs to Nuffield | DIVISION SALE
Virgin Active has slimmed down its portfolio of UK fitness c...
05
|
Nov
|
Liverpool-based building contractor enters administration | ADMINISTRATION
A building contractor based in Liverpool has entered adminis...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.