Whitbread to sell gym chain for £925 million

Source: Stock Market Digital

Date :04/06/2007 09:10:29

Leisure company Whitbread is to sell its David Lloyd gym chain for £925 million.

The health clubs are being bought by Versailles Bidco, a bid vehicle of private equity firm London & Regional Holdings and Bank of Scotland.

Whitbread, which owns a number of chains including Costa Coffee, Premier Travel Inn and Beefeater, said it planned to use the cash raised by the sale to reduce its debts.

The sale of David Lloyd Leisure follows Whitbread's disposal of TGI Friday and its 50 percent stake in Pizza Hut.

Whitbread chief executive Alan Parker said: "Following the success of the management action taken in David Lloyd over the last 18 months, and a review of the health club market, we have decided that this sale represents excellent value for our shareholders.

"Whitbread is now well placed to deliver the ambitious growth plan for its hotels, restaurants and coffee shops."

The David Lloyd chain has 69 outlets, of which 60 are across the UK and the Republic of Ireland.

June 4 2007