Virgin Active for sale?

The New York Times has reported that Virgin Active, the international health and fitness club chain owned by Richard Branson's Virgin Group, has been in talks with private equity firms over possible sale options.

Among various press reports, London’s The Daily Telegraph has reported that Virgin Active's international management has met with Kohlberg Kravis Roberts, the Blackstone Group, Advent International and CVC Capital Partners regarding a £1 billion (AUS $2 billion) sale. Bloomberg News, meanwhile, reported that Virgin Active was approached by private-equity firms as it seeks to raise money for acquisitions. The news service said negotiations were at an early stage.

Virgin is eyeing a potential consolidation and a deal with a buyout shop could help it achieve that goal, Bloomberg said. The Daily Telegraph also reported that Virgin is mulling an initial public offering for the health club unit, and Branson has asked Goldman Sachs and Royal Bank of Scotland to work on a possible listing.

In Australia, Virgin Active operates two clubs, in Sydney’s Frenchs Forest and Melbourne’s Bourke Street and is set to open a third club in the Sydney CBD in October. It is understood these may be offered for sale as an independent unit.

3rd October 2008 - VIRGIN SEEKS TO REDEFINE THE GYM EXPERIENCE IN AUSTRALIA