Following the transaction, which is is expected to take place during the four quarter of 2011, CVC will own a 51% stake in Virgin Active. Virgin Group will remain a significant shareholder with a 49% stake.
The partnership will enable Virgin Active to grow organically, continuing its club rollout programme, and through acquistions in both existing and new geographies. In July 2011, the company acquired Esporta, which added 53 health and fitness clubs (including 20 racquets clubs) to the Virgin Active UK portfolio.
As part of the deal, Virgin Active will acquire the four Australian clubs currently owned by Virgin, to mark its first expansion into the Asia-Pacific region.
Founded in 1999 and led by CEO Matthew Bucknall, Virgin Active currently operates 254 clubs with 1.1 million members across the U.K., South Africa, Italy, Iberia and Australia.