News broke last week that a strategic review is underway at David Lloyd Leisure. A ‘strategic review’ normally denotes that a significant event is underway.
David Lloyd Leisure
The business operates 89 health and racquets clubs across the UK and Europe and was acquired for £940 million (€1.1 billion Euros) in 2007 by London and Regional Properties, as part of a consortium. The business is now part-owned by the Lloyds Banking Group and I was surprised to discover that David Lloyd Leisure represents one of Lloyds Banking Group’s largest debt exposures understood to be in excess of £1.3 (€1.5 billion Euros).
David Lloyd Leisure said:
“The company is trading well and is in good shape. It was always going to be the case that the shareholders would review their options and that won’t be an instant process.”
So what does 2012 hold for David Lloyd Leisure? There seems to have been little emphasis on growing the European business and so these 10 clubs could be sold but to whom given the present macro-economic climate? As for the UK, clearly there is an opportunity to bring together the Esporta health and racquets clubs (now owned by Virgin Active) together with the David Lloyd clubs with tennis – the David Lloyd clubs have more than 350 indoor tennis courts across the estate.
What do you think? Please leave a comment
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