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CVC moving in on Virgin Active

CVC Capital Partners is in talks to buy a major portion of Virgin Active, in a deal which would value the gym chain at £1bn, the Sunday Times has reported. Richard Branson's Virgin Group owns 76% of the company, but is looking to raise cash to speed its expansion. It is expected to sell part of its stake and retain a large shareholding, but it is still unclear whether CVC will become the majority shareholder. As part of the deal, CVC is likely to buy out two rival private equity investors, Bridgepoint and Permira, which each own a minority share.

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