Private equity heavyweight TDR Capital, known for its ownership of Asda, is contemplating selling gym chain David Lloyd to itself.
The firm has engaged Jefferies to examine potential options, which may involve transferring its stake from one fund to another and bringing in new investors, as reported by .
As per the Financial Times, which initially broke the news, the transaction could value David Lloyd between £1.8bn and £2.3bn.
In June 2024, City AM reported that David Lloyd had managed to reduce its pre-tax loss from over £30m to just under £26m during its most recent financial year.
The gym chain's revenue also saw a boost, rising from £655m to £756m within the same timeframe.
TDR Capital, which took majority ownership of the supermarket giant last year, attempted to sell David Lloyd in 2017 and again in 2023.
The private equity behemoth first acquired the chain 12 years ago. When approached by City AM, TDR Capital declined to comment.
Earlier this month, City AM revealed that TDR-backed Jollyes had slipped further into the red despite a continued surge in sales as it seeks to intensify its competition with Pets at Home.
The company recorded a pre-tax loss of £13.3m for the year ending 26 May, 2024, following a £5.3m loss in the previous 12 months.
However, its turnover leapt from £115.2m to £144m over the same period.
Last month, reports emerged that TDR Capital was set to refinance BPP Holdings, a º£½ÇÊÓƵ-based provider of professional and academic education, after unsuccessful attempts to sell the educational training institution.
Earlier this year, self-made millionaire Simon Orange, who co-owns Premiership rugby club Sale Sharks, sold his business empire to TDR Capital in a deal valued at over £1bn.
In addition to David Lloyd and Asda, TDR Capital's investment portfolio includes Constellation Automotive, which owns Cinch and WeBuyAnyCar.
