So LA Fitness has got its cheque book out yet again and snapped up the 21 Dragons health clubs (owned by Crown Sports PLC) for a `lofty`£60 million. LA is paying 13.2 p a share which is a 70% premium on the present share price.
Ray Pierce, Chairman of Crown Sports said it was a good deal for shareholders. I think what he meant to say was that it was a stunning deal, which equates to 27 times 2005 pre tax profits and the equivalent of £2.85m per club. But, LA Fitness do get their hands on 21 `mature` clubs which to develop organically would take five years or more. So goodbye Dragons…I always thought it was a rather odd brand name for a health club chain.