Virgin Active, the health and fitness group owned by Virgin Group, has completed its acquisition of Holmes Place’s UK business.

Virgin Active, the health and fitness group owned by Virgin Group, has completed its acquisition of Holmes Place’s UK business.

The completion follows approval by the Office of Fair Trading for the transaction, and involves Bridgepoint and the Permira Funds, the previous owners of Holmes Place, reinvesting in Virgin Active by taking a minority stake of approximately 12 per cent in the enlarged business. Virgin Group retains majority ownership.

The £142.5 million debt package was fully underwritten by UBS, with Rand Merchant Bank providing a ZAR1.515 billion (£109.8 million) debt package to the group.

Matthew Bucknall and Simon Gordon, managing director and finance director respectively of Virgin Active, will continue in their positions at the enlarged group. Post-takeover, the pro forma run rate of EBITDA is forecast to be £65 million.

Virgin Active will rebrand the Holmes Place clubs as Virgin Active and will also be investing £20 million in the Holmes Place estate.