Cannons, the chain of health clubs and gyms, is to be taken private in a public to private transaction led by Royal Bank Private Equity. Royal Bank Private Equity’s bid is supported by a debt package underwritten by Royal Bank of Scotland.
Following bid talks announced on December 21, Health Club Acquisitions Ltd, a management-led newco, agreed to acquire the entire issued share capital of Cannons Group. This was to be via a recommended tender offer for GBP1.55 in cash per share, or a total value of GBP260 million, in a leveraged buyout transaction.
BNP Paribas and Royal Bank of Scotland have provided medium term banking facilities of GBP240 million and a working capital facility of GBP5 million. RBS Mezzanine and BNP Paribas have arranged mezzanine loan facilities of GBP35 million.