Leading Irish businessmen and the family of former tennis pro, David Lloyd, are set to sell the British health club group they control in a deal valued at close to €300 million.
Bloodstock tycoon John Magnier, and his associates, Michael Tabor, currency dealer JP McManus and financier Dermot Desmond, have agreed to sell Next Generation Clubs (NGC) in a deal valuing it at £200 million sterling (€293 million).
Former Kerry Group chief executive, Denis Brosnan, who chairs NGC, holds 1.47 per cent of the company.
The four men will be the main beneficiaries of the £107 million cash payment. They hold 60 per cent of the business. Its other shareholders include brewer Scottish and Newcastle, which has 15 per cent, and David Lloyd and his family, who hold 10 per cent.
Property group London and Regional is offering to buy NGC for £107 million cash and a further £95 million in debt, giving a total enterprise value of over £200 million.
Mr Magnier owns 15 per cent of NGC, largely through one company, Acomita Investments. Mr Desmond holds a similar amount through his Dublin-based vehicle, IIU Nominees. Both Mr Tabor and Mr McManus are understood to hold around 15 per cent each.
Their initial investment was £35 million but there have been further cash calls on stakeholders since then. The last issue priced shares at £1.02. London and Regional's offer values them at £1.85.
Mr Brosnan and the NGC board yesterday recommended the offer. "This transaction provides NGC shareholders with certainty of value at a level which reflects the quality of the NGC business," Mr Brosnan said.
Next Generation has 14 racquet and health and fitness clubs in the UK. Last year it turned over £50.6 million and had operating profits of £10 million. London and Regional has assets of £2 billion.
Mr Magnier and Mr Tabor are partners in Tipperary-based Coolmore Stud, a world-leading racehorse breeding operation with divisions in the US and Australia.
Mr McManus runs a currency trading operation from Geneva, Switzerland, but is best known as the leading owner of national hunt racehorses in Britain and Ireland.
Mr Desmond is an active investor through IIU. He also owns a stake in Scottish Premier League champions, Glasgow Celtic FC. Mr Brosnan was chief executive and subsequently chairman of Kerry Group.
