Asda owner TDR Capital weighing up David Lloyd sale
TDR Capital, the private equity giant behind the likes of Asda, is considering selling gym chain David Lloyd to itself.
The firm has hired Jefferies to explore its options which could include transferring its stake from one of its funds to another while securing new investors.
According to the FT, which first reported the story, the deal could value David Lloyd between £1.8bn and £2.3bn.
In June 2024, Morning Wire reported that David Lloyd cut its pre-tax loss from more than £30m to just under £26m during its latest financial year.
The chain’s revenue also increased from £655m to £756m over the same period.
TDR Capital, which became the majority owner of the supermarket giant last year, has tried to tell David Lloyd in 2017 and again in 2023.
The private equity giant first bought the chain 12 years ago.
TDR Capital declined to comment when approached by Morning Wire.
Turbulent time for David Lloyd owner
Earlier this month, Morning Wire reported that TDR-backed Jollyes had sunk further into the red despite its sales continuing to surge as it attempts to increase its rivalry with Pets at Home.
The company has posted a pre-tax loss of £13.3m for the year to 26 May, 2024, after having also made a £5.3m loss in the prior 12 months.
However its turnover jumped from £115.2m to £144m over the same period.
Last month it was also reported that TDR Capital was to refinance BPP Holdings, the UK-based provider of professional and academic education, after failing to sell the educational training institution.
At the start of the year Simon Orange, the self-made millionaire who co-owns Premiership rugby club Sale Sharks, sold his business empire to TDR Capital in a deal worth more than £1bn.
As well as David Lloyd and Asda, TDR Capital’s investments include Constellation Automotive which owns Cinch and WeBuyAnyCar.