CVC and Virgin Group announced that Brait has agreed to acquire a controlling interest in Virgin Active. The transaction puts an enterprise value on the business of $1.94 billion (£1.3 billion).
Virgin Active boasts over 1.3 million adult members and 267 clubs spanning nine countries and four continents including South Africa, UK, Italy, Spain, Portugal, Australia, Namibia, Thailand and Singapore.
According to a statement released by Virgin Active, 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, at which time Brait will own 80 percent of Virgin Active, and Virgin Group will retain 20 percent.
“Virgin Active is a business that we are proud to have been associated with from the very beginning, over 15 years ago,” said Sir Richard Branson, the founder of Virgin Active, in a statement. “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 alongside Brait, another long-term investor with a strong track record in growing businesses, and would like to thank CVC for their support of the business during their period of ownership.”
Virgin is a leading international investment group. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow successful businesses in sectors including mobile telephony, travel and transportation, financial services, leisure and entertainment and health and wellness.
Brait is an investment holding company focused on driving sustainable long-term growth and value creation in its investment portfolio of sizeable unlisted businesses operating in the broad consumer sector.
According to Virgin Active, the implementation of the transaction is subject to the approval by the South African and Namibian competition authorities.
