Virgin Active looking fit for stock floatation

Jul 26 2010 by John Hill, The Journal

VIRGIN Active could be floated on the stock market in the autumn in a move that values the gym chain at £1billion.

The company’s management team has held a series of talks with private equity firms over a potential deal.

According to the Sunday Telegraph, KKR Blackstone, Advent and CVC are believed to be interested, although a formal auction process has not yet begun.

The 187-club chain reported sales of £391million last year, and has branches in Britain, Europe and South Africa.

It acquired gym business Holmes Place in 2006 and opened eight new clubs in 2009 with others earmarked for Bristol and Guildford in future.

Sir Richard Branson holds a 75% stake in the company, but failed in a previous bid to float the company in 2007 due to stock market volatility.

Gateshead-born former Liberty X singer Michelle Heaton hosted a fitness workout in Preston as part of the company’s tenth anniversary last year.