Two of the biggest brands in the health and fitness market are gearing up for a merger. As reported last week, premium health club operator David Lloyd Leisure have been courting the interests of several investors who could save the debt ridden-business.
It’s now become apparent, in one of the worst-kept secrets in the sector, that rival chain Virgin Active are eyeing a potential takeover bid. The deal would create a £2bn health and fitness empire, although any potential merger is likely to be subject to approval by the monopolies commission.
The big question for industry insiders is: What effect does this have on our industry? Some will be concerned about the diminishing choice of large employers within the industry and that the lack of competition will have a negative impact on salaries. There’s certainly been a trend for senior managers to leave the industry when major takeovers occur and the losses were substantial with the demise of Holmes Place and Esporta.
However, VA may have competition from an unlikely source over the next couple of years as Fitness First rises from the flames of their CVA agreement with a concerted departure from the budget end of the market.
Original article available from skynews.com http://news.sky.com/story/1080502/virgin-active-eyes-2bn-david-lloyd-merger