Tuesday, 31 August 2010

Slack on the back

"Much talk about a potential sale of Virgin Active to private equity. But is it really likely? Potential bidders seem baffled by the stories and suggest that ubiquitous adviser Goldman Sachs - fresh from its Ocado triumph - is leaking the stories in a desperate effort to stuff another over-priced offer down investors' throats. Developing..." SlackBelly, July 28, 2010.

"Virgin Active, Sir Richard Branson’s gym chain, has shelved plans for a £1 billion flotation.

The company, which operates in Italy, Spain, Portugal, South Africa and the UK, had been exploring a float or sale to a private-equity firm. Insiders suggested the sale talks are also on ice although some observers believe a deal could yet be revived." Sunday Times, August 29, 2010.

2 comments:

cautiousbull said...

Given the difficulties currently being faced by Fitness First and David Lloyd Leisure in the private equity space, I suspect that lenders will be cautious about financing any further health club buy-outs (ie little leverage on offer and at expensive margins).

http://cautiousbull.wordpress.com/

SlackBelly said...

You may well be right, cautiousbull.