The donors of Private Equity of David Lloyd Leisure, the Premium Health and Fitness Channel, are about to finalize an agreement of 2 billion pounds Sterling who will see him continue as the long -term owner of the company.
Sky News has learned that TDR Capital, which has owned David Lloyd Leisure since 2013, puts the final touch to a so-called continuation vehicle which effectively transfers the ownership of the group of one of its funds to another entity which has many of the same investors.
Banking sources have said that TDR had aligned a series of new major investors to help finance the 800 million pounds of equity commitments to finance the agreement.
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The rest of 1.2 billion pounds sterling is in the form of the existing debt of David Lloyd Leisure which dates back to the continuation vehicle.
A banking source said on Tuesday that there had been more than 1 billion pounds sterling of demand for the equity of the transaction.
David Lloyd Leisure is one of the largest health and fitness operators in Europe, with 134 clubs and more than 11,500 employees.
Under the property of TDR, it extended its number of sites of 50%, in particular by opening 30 sites in continental Europe.
During his last financial year, he recorded profits before interest, taxes, depreciation and depreciation of just over 230 million pounds sterling – an increase in the third of the previous year.
The chain now has more than 800,000 members last month.
People close to the company said that its investment in spas and the introduction of popular well-being concepts such as meditation, yoga and tai chi were partly responsible for its improved performance.
They added that he had a solid pipeline of new clubs in the United Kingdom and Europe, with 30 new openings planned in the coming years, and proposals to open more than 200 Padel courts to its sites.
The decision to transfer the ownership of David Lloyd Leisure to a continuation vehicle would allow new and existing investors to benefit from future growth, according to initiates.
It also offers limited partners or investors in the TDR fund in which David Lloyd Leisure currently has the possibility of making their investment.
TDR, which also owns ASDA and Stonegate Group, the largest British advertising company, explored a sale by David Lloyd Leisure in the past, including recently, but has not attracted offers of sufficient value, according to bankers.
Jefferies advises TDR on the continuation vehicle – which has become an increasingly common means for investment capital companies to solve the problems linked to the property of long -standing assets – and its negotiations with investors.
A TDR spokesperson refused to comment.