Virgin Active Holdings raised R1.8bn from backers including billionaire Christo Wiese, and will expand with the acquisition of the nutrition assets of South Africa’s Real Foods Group.
The UK health chain, part-owned by Richard Branson’s Virgin Group and private-equity firm Brait SE plans to create a combined fitness and nutrition company, according to a statement. Dean Kowarski, who founded Real Foods in Cape Town in 2013, will become chief executive officer of the enlarged company.
“We now have the opportunity to combine our skills to deliver a complete health offer around fitness and nutrition,” Kowarski said. “The additional investment in the business positions Virgin Active strongly to deliver growth over the long term.”
While the Covid-19 pandemic caused health clubs to struggle amid lockdown rules and social distancing, the industry is recovering — helped by many people’s focus on healthier lifestyles. That creates “significant growth potential” for the combined group, Virgin Active said. The deal values Real Foods at 28.6 million pounds.
Virgin Active has more than 230 clubs and about one million members worldwide, while Real Foods owns 204 sites with brands like Kauai, many of which are already in Virgin gyms.
