Brait Plc, the South African investment holding company backed by billionaire investor Christo Wiese, is expanding its portfolio through Virgin Active’s €135 million ($151.11 million) acquisition of Holmes Place Germany (HPG), a deal that strengthens the fitness group’s position in Europe’s largest premium fitness market.

The transaction, announced on November 9, 2026, will give Virgin Active access to 84,100 members through HPG’s network of 13 large-format fitness clubs across six German cities. The acquisition is expected to make Virgin Active, the leading premium fitness operator in Germany, Europe’s largest fitness market, which has approximately 12.4 million members.

HPG is forecast to generate revenue of €70.2 million ($78.58 million) and earnings before interest, tax, depreciation and amortisation (EBITDA) of €21.5 million ($24.07 million) for the year ending December 2026, representing annual EBITDA growth of 27%. The €135 million ($151.11 million) cash consideration implies an enterprise value-to-EBITDA multiple of 6.3 times, based on HPG’s 2026 forecast earnings.

Germany acquisition strengthens Virgin Active’s European position

The acquisition provides Virgin Active with immediate scale in a market that Brait described as offering significant long-term growth opportunities.

Germany’s fitness industry has expanded over the past decade, with its premium segment forecast to grow at a compound annual rate of 9.3% through 2028, according to the European Health & Fitness Report 2026.

The market remains fragmented and relatively underpenetrated compared with other European countries, creating opportunities for established operators to expand their membership and club networks. Virgin Active said the transaction aligns with its strategy of building scale and market leadership in key continental European markets where it can establish a strong competitive position.

Holmes Place brings 84,100 members and $24.07 million EBITDA

HPG operates 13 large-format clubs across six German cities, with a combined membership base of 84,100. Its experienced management team is expected to remain with the business, providing continuity as Virgin Active integrates the German operations.

The existing club network is described as well capitalised, although some additional capital expenditure will be required to rebrand the facilities under the Virgin Active name.

The combined business is expected to generate synergies, primarily through head-office cost savings, partly offset by royalties payable to Virgin Group.

Following completion, HPG is expected to contribute approximately 14% of Virgin Active’s 2026 group EBITDA of €21.5 million ($24.07 million), while international operations will account for 56% of total earnings, compared with 44% from South Africa.

$151.11 million deal to be funded from existing cash

Virgin Active, one of Brait’s diverse portfolio companies, will finance the acquisition through existing cash resources, with completion expected by mid-December 2026, subject to customary completion adjustments. The transaction comes after Virgin Active implemented a £175 million ($195.89 million) rights issue, which helped reduce its debt by £243 million ($272 million), including the conversion of convertible preference shares into ordinary shares.

Following the rights issue, Virgin Active’s net debt-to-EBITDA ratio stood at 2.4 times. The acquisition is expected to increase the gearing measure to 2.9 times after completion.

Brait said further details of the transaction would be presented alongside its interim results, scheduled for publication at 9:00 a.m. South African Standard Time on November 11, 2026.

The announcement, issued in Port Louis, Mauritius, noted that HPG’s forecast financial information had not been reviewed or reported on by Brait’s auditors and remained subject to risks and uncertainties.