BC Partners Plans Sale of Fitness First Chains in Australia, Asia to Raise $1 Billion
BC Partners is planning what could be the largest private-equity sale in 2011 by putting on the block Fitness First chains in Australia and Asia. The sale aims to raise $1 billion.
British owners of the popular gym, which counts 400,000 members spread across 165 gyms in the two continents, are seeking buyers in the United Kingdom. Reports said that initial bids are due this month, although BC Partners have not officially announced the sale.
Fitness First initially opened in 1993 in the UK with one club. BC Partners bought the franchise in 2005 for $1.6 billion from private equity firm Cinven Limited. In Asia, Fitness First has gyms in Hong Kong, the Philippines, Malaysia and Singapore.
BC Partners delayed its planned initial public offering (IPO) in Singapore for Fitness First because of the volatile equity markets. The IPO aimed to raise for the firm $500 million.
Fitness First registered earnings before interest, tax, depreciation and amortization of $150 million for its Asian and Australian operations.
BC Partners is said to have appointed Rothschild to handle the sale and expects the deal to be done by Christmas.
Fitness First accounts for 21 per cent of Australia's $1.8-billion fitness industry. Second place YMCA holds only 5 per cent of the market. It is not known yet how the sale would affect the operations or members of Fitness First in Asia and Australia.
