80% of Virgin Active is to be bought by South African investment firm Brait for £1 billion (£673 million).
Sir Richard Branson’s Virgin Group will retain a 20% holding in the chain which owns 267 gyms in nine countries, however private equity firm CVC Capital Partners, which jointly owned the health club with Virgin Group, has sold its stake entirely.
Brait, which is owned by South African billionaire Christo Wiese, looks to tap in to the growing demand for fitness from Africa’s middle-class and said it would fund the deal from cash reserves.
The deal is subject to approval from South African competition authorities.
Sir Richard Branson said: "Virgin Active is a business that we are proud to have been associated with from the very beginning, over 15 years ago,"
"We are delighted that we will continue to play a part in this alongside Brait, another long-term investor with a strong track record in growing businesses."
Brait's chief executive, John Gnodde, said that "Virgin Active's successful track record, high cash generation and exciting growth prospects in both emerging and developed markets make this an attractive opportunity" for the company and its shareholders.
