Virgin Active In Talks Over GBP1 billion Sale - Report

25th Jul 2010 13:39

LONDON (Dow Jones)--Richard Branson's Virgin Active is in talks with private equity groups over a potential sale of the health and fitness chain that could amount to GBP1 billion, The Sunday Telegraph reports, citing unnamed sources. Kohlberg, Kravis Roberts & Co., Blackstone Group LP, Advent International Corp. and CVC Capital Partners Ltd are among the investor groups that could be interested in the purchase, the newspaper says. It adds, citing sources close to the company, that Virgin would likely keep a sizeable stake in the gym group as part of any ownership changes. Separately, The Sunday Times reports that Branson, a 75% shareholder in Virgin Active, is preparing the group for a stock market flotation. Branson has instructed investment banks Goldman Sachs Group Inc. (GS), Citi Bank and Royal Bank of Scotland Group PLC (RBS.LN) to begin work on the listing, the newspaper says. The newspaper adds the banks are aiming to float the 187-strong gym group in the autumn, but the timing could be delayed until early next year. No one at Virgin Group was immediately available for comment. Newspaper Web site: http://www.timesonline.co.uk Newspaper Web site: http://www.telegraph.co.uk -By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires July 25, 2010 08:39 ET (12:39 GMT)