Virgin Active has a business in the fast growing and under-penetrated South African market, where it is the number one with 114 clubs (including one in Namibia). It offers its members a broad spectrum of health club options ranging from the high end, high touch, Classic Collection to the entry level Virgin Active Red format. Across the rest of its markets Virgin Active is the leading large format, full service health club chain focused on key metropolitan centres. It is the number one health club operator by revenue in the UK and Italy, and it has attractive positions in both Iberia and Australia. It has also started building a business in the fast growing Asian markets, having opened clubs in Singapore and Bangkok over the last two years. Over the ten years between 2004 and 2014 (which included the acquisitions of Esporta clubs in the UK and Spain and Holmes Place clubs in the UK), the company grew its revenue at a CAGR of 22 per cent and its underlying EBITDA at a CAGR of 20 per cent on a constant currency basis.

"There was speculation about a flotation and we had decided that Johnannesburg was the best place for the issuance. We had begun speaking to institutions in Europe and America as well and had overwhelming support. That enthusiasm percolated through to Brait who came in at a late stage and pre-empted the IPO with this outstanding offer", Virgin Active Group Chief Executive Paul Woolf is cited by press.

CVC will be selling all of its shareholding and Virgin Group will be selling part of its shareholding. The transaction is expected to complete over the summer, following which Brait will own 80% of Virgin Active and Virgin Group will retain 20%, excluding management. According to the presscoverage the deal is understood to value the business at around ten times Virgin Active's earnings. The existing management team will be retained, and will be reinvesting alongside Brait.

Sir Richard Branson commented: "Virgin Active is a business that we are proud to have been associated with from the very beginning, over fifteen 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."

Source: Virgin Active
Picture: Virgin Active