Sunday April 27, 01:40 PM
Virgin Active could get new boss but won't float this year - report
LONDON (Thomson Financial) - Richard Baker, the former boss of high street chemist Boots (LSE: AB.L - news) , is limbering up for a return
to the boardroom at Virgin Active, Sir Richard Branson's gym chain, said the Telegraph on Sunday quoting sources.
Baker is this weekend in advanced discussions to become non-executive chairman of Virgin Active the paper reported. It (Frankfurt: A0MLX5 - news) would be his first major job since he left Alliance Boots last year, 12 months after its 11 billion pounds takeover by Kohlberg Kravis Roberts, the American private equity firm.
With 169 clubs, including 71 in the United Kingdom, Virgin Active is Britain's second-biggest health and fitness chain, behind Fitness First. It has almost 900,000 members worldwide in countries including South Africa, Italy and Spain.
Baker's appointment will re-ignite suggestions Virgin Active is preparing for an imminent flotation. Branson has been rumoured to be considering floating the business with a 1 billion pounds price tag, but the lack of appetite for new listings has put such proposals on hold.
People close to Virgin Active's plans said last night that while a listing remained the preferred option, it was unlikely to take place this year said the Telegraph on Sunday.
The company's most recent accounts show earnings before interest, tax, depreciation and amortisation of 50.8 million pounds.
Branson's Virgin Group has a stake of around 75 percent in Virgin Active, with the rest owned by Permira, Bridgepoint and the company's management.
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