Fitness First Gym on Sale for $1 Billion
The Asian and Australian operations of the Fitness First gym chain have been put up for sale for $1 billion.
Bloomberg reported that a source privy to the matter confirmed that BC Partners Ltd., the London-based private equity firm, had sent out feelers to interested takers without a formal announcement and that initial bids are due this month.
Fitness First has about 165 gyms and more than 400,000 members in Asia and Australia. It has operations in Hong Kong, the Philippines, Malaysia and Singapore.
In a report, the Australian Financial Review said the sale came after the planned initial public offering this week in Singapore was postponed due to volatile equity market conditions.
Any buyer may pay seven times the Asian and Australian operations' earnings before interest, tax, depreciation and amortization of A$150 million, or more than A$1 billion, the Australian Financial Review report further said.
Fitness First had been weighing plans to raise about $500 million in a Singapore listing, two people with knowledge of the matter said in February.
BC Partners bought the business in 2005 from private-equity firm Cinven Ltd. for about $1.6 billion.