Australia's Quadrant buys Goodlife Health Clubs for $198m
Quadrant Private Equity, which recently closed its eighth Australia mid-market fund at $980 million ($754 million), has agreed to buy Ardent Leisure’s Goodlife Health Clubs business for A$260 million.
The private equity firm will make a cash payment of A$230 million and issue a vendor note to Ardent, payable no later than two years from the date of completion, for the remaining A$30 million, according to a filing. The price represents a valuation of 8.6 times EBITDA for the 2016 financial year, based on an unaudited calculation of A$30.1 million.
The deal follows a strategic review of Ardent's health clubs division, which concluded that the company would be best served selling the asset and using the capital for its pipeline of family entertainment centers in the US and investing in its theme park and bowling businesses. It owns brands such as the Dreamworld and WhiteWater World theme parks, as well as bowling assets AMF and Kingpin Bowling.
Goodlife operates 76 locations across Australia and has more than 200,000 members. Revenue reached A$178.4 million in the 2015 financial year, up 8.7% from the previous 12-month period, while EBRITDA expanded 3.3% to A$72.5 million.
"We are excited by the opportunities for this business to expand its membership base and service offering by encouraging Australians to live healthier and more active lifestyles," said Chris Hadley, executive chairman of Quadrant.
The latest fund, Quadrant Private Equity No.5 - which is the GP's fifth as a fully independent entity - was substantially oversubscribed and existing investors account for the bulk of the corpus. The previous vehicle closed in early 2014 at A$850 million.
Quadrant is also expected to acquire Ironbridge Capital's remaining interest in Super A-Mart-Barbeques Galore, which would represent the continuation of a Fund VII deal. Ironbridge led the buyout of both groups in 2006 and then Quadrant came in four years ago, taking a 60% stake in the holding company and injecting additional capital and securing a new financing package.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.