(Reuters) -TDR Capital said on Monday it agreed to sell its stake in David Lloyd Leisure to a newly formed continuation vehicle that will take majority control of the health and fitness club chain.
TDR Capital Divests Stake in David Lloyd Leisure Health Clubs
TDR Capital's Stake Sale Overview
(Reuters) -TDR Capital said on Monday it agreed to sell its stake in David Lloyd Leisure to a newly formed continuation vehicle that will take majority control of the health and fitness club chain.
Valuation and Financial Details
The Financial Times said the deal valued David Lloyd Leisure at about 2 billion pounds ($2.71 billion), citing people familiar with the matter.
Background of David Lloyd Leisure
Reuters could not immediately verify the valuation.
Future Plans for David Lloyd Leisure
Under the deal, the new TDR Capital Titan fund will acquire the stake in David Lloyd Leisure from TDR Capital III, another TDR fund.
TDR Capital Titan, backed by investors including the Children’s Investment Fund Foundation, S3 and investment funds managed by Coller Capital, will also allocate more than 100 million pounds to support David Lloyd Leisure’s growth.
TDR took control of David Lloyd Leisure in 2013 from London & Regional and Caird Capital LLP for 750 million pounds. It has made several attempts to exit its ownership but has struggled to find a buyer.
"The transaction has allowed our current investors the option for a full exit, and we are very pleased to be continuing our work with ... the wider David Lloyd team." Tom Mitchell, Managing Partner at TDR Capital, said in a statement on Monday.
($1 = 0.7392 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Tasim Zahid)
