Gym bidders' last lap

PRIVATE equity firms MidOcean Partners and Electra have entered the final stages of a race to buy LA Fitness, the quoted health clubs chain that put itself up for sale last year for £160m, including debt.

South African founder and chief executive Fred Turok decided in December to seek offers for the business after becaming disillusioned with the stock market as a way to raise capital.

He started the company in 1990 when he bought his first gym in Victoria, central London.

The company now has 67 clubs and Turok is in line for a multi-million-pound fortune if he decides to cash in his 16% stake.

LA Fitness is regarded as one of the best gym operators in the country and attracted several expressions of interest before appointing Close Brothers as adviser on a sale.

It is understood that buyers have been asked to reconfirm their bids in the next few days. MidOcean and Electra are believed to be the last two bidders.

Shares in LA Fitness closed last week at 235p to give the company a stock market value of £96.1m.