TDR secures £750m David Lloyd deal

The acquisition marks the first deal from TDR’s current fund, which is targeting €2bn and held a €900m first close earlier this summer.

UK-based TDR Capital has agreed to acquire David Lloyd Leisure, a European health club operator, according to a statement.  

Details of the transaction were not disclosed, but it is understood TDR Capital will buy the business for approximately £750 million. 

TDR declined to comment beyond the statement.  

David Lloyd Leisure has 81 clubs in the UK and operates another 10 clubs across Europe. David Lloyd Leisure has more than 450,000 members and employs approximately 6,000 people. 

TDR said it planned to improve David Lloyd Leisure’s member experience and strengthen the company’s market position in the sector, both though organic growth – it has a pipeline of over 20 potential additional sites in the UK – and also through M&A. It is also keen to focus on its European pipeline, with two new clubs currently under negotiation, TDR said. 

TDR's founding partner Manjit Dale called David Lloyd “a unique business” and “a fantastic brand”.  

TDR is currently in market targeting €2 billion for its third buyout fund. The vehicle held a €900 million first close in early summer. The UK-based firm started fundraising in December last year and will make a 10 percent GP commitment. In June, a source told PEI three-quarters of investors had so far re-upped.  

TDR was founded in 2002 and has approximately €2.6 billion under management. It focuses on leveraged buyouts in Western Europe with enterprise values between €150 million to €750 million. 

TDR’s first fund closed in 2003 on approximately €500 million, according to PEI’s Research and Analytics division. In June, a source told PEI that TDR Capital II, a €2.2 billion 2007 vintage which is fully invested, was valued at 1.7x. Some of the investors in Fund II include Swift Capital Partners, Graphite Capital and Heliad Equity Partners, according to PEI’s Research and Analytics division.