Health and fitness group Virgin Active has agreed to acquire a majority stake in Holmes Place's UK business, comprised of 47 clubs in the UK with 190,000 members. Bridgepoint and Permira have agreed to reinvest by taking a minority stake in Virgin Active. The transaction values the enlarged group at £650m.
The Holmes Place clubs will be rebranded as Virgin Active by the end of Q2 2007.
Bridgepoint and Permira backed the £210m buy-out and delisting of Holmes Place in May 2003. Bridgepoint and Permira will continue to be majority owners of the Holmes Place European businesses which are not being sold as part of this deal. These comprise health and fitness clubs in Germany (seven), Austria (four) and Switzerland (four).
Sir Richard Branson, founder of Virgin Group, said, 'I am delighted to confirm today that Virgin Active has completed its purchase of Holmes Place meaning many thousands of new members will experience fitness the Virgin Active way!'
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Bridgepoint, Permira to sell Holmes Place's UK business to Virgin Active