Apax Partners and CVC, the private equity firms, have emerged as the frontrunners to acquire Whitbread’s David Lloyd Leisure (DLL) fitness clubs estate, according to reports.
It is understood that the two groups have approached potential management teams to lead a buyout of the fitness chain, which could take place over the next couple of months.
It is also believed that Mike Tye, managing director of DLL, who has lead a turnaround in the division’s performance, could lead his own bid for the chain, which includes 59 clubs and approximately 300,000 members.
Some industry sources suggest that the group recently turned down a bid of up to £800m for the chain from Simon Halabi, the new owner of Esporta.
It is thought that Whitbread values DLL at closer to £900m.
Sources suggest however, that a sale is imminent with widespread cost cutting and streamlining taking place within the business.
Shares in Whitbread, the leisure group, closed on a record high yesterday, up 11% to 1934p, on speculation that a takeover approach for the entire company is imminent.
Rumours circulating the City suggest that there is renewed interest in the company from a private equity group, with a takeover bid of 2300p a share or about £4.5bn mooted.
