Virgin Active sells Derby gym
Gym operator Virgin Active has sold its Derby club as part of a deal worth around £80m.
The Derby site is one of 35 clubs to be sold to Nuffield Health in a deal which will bring Virgin Active’s UK estate down to 61 gyms.
Virgin Active says it is now creating a “more focused” business model and will be creating 80 jobs.
The firm also revealed its financial results. Revenue for the Group was £630.5m, representing a 3% increase on last year. Underlying EBITDA grew by 15% to £133.5m.
Paul Woolf, CEO of Virgin Active, said: “This transaction is an acceleration of our global strategy to focus on high end clubs in metropolitan areas. We will have a far more focused UK business with particular strength in London, the South East and bigger towns and cities. It will also help accelerate investment into our UK estate, particularly as we continue to grow our UK Collection portfolio of clubs.
“Both the members of the clubs being sold, and the associated club teams, will be transferred to Nuffield Health, and this was a very important consideration for us. We’d like to thank our people for their contribution to the success of these clubs, and our members for their support.”
