CVC in talks to take stake in Branson’s Virgin Active gyms
PRIVATE equity firm CVC Capital Partners is poised to take a significant stake in Sir Richard Branson’s Virgin Active gym chain, in a deal valued at £1bn.
The buyout house is in exclusive deal talks with the company to buy a significant shareholding. It is not known whether it will take a controlling stake.
CVC is said to be favourite to strike a deal, despite interest from several other private equity firms.
As part of the sale, British billionaire Richard Branson would sell down part of his stake but would retain a large shareholding. He currently owns a 76 per cent stake in the firm.
Two other private equity firms, Bridgepoint and Permira, own minority holdings in Virgin Active and are likely to be bought out by CVC as part of the deal.
Cash raised from the sale is being earmarked to fund the firm’s expansion, as it looks to catch up on larger rival Fitness First.