Ardent Leisure Group
(ASX:AAD) has inked a binding deal to acquire the Fitness First Western Australian portfolio for $32.5 million.
The leisure and entertainment businesses operator will buy eight Fitness First health clubs in Perth. Combined with the existing six Goodlife health clubs in the state Ardent Leisure says the total portfolio will create the state’s largest full service health club chain.
The company plans to fund the acquisitions through an underwritten $50 million institutional placement.
Ardent Leisure also plans to undertake a non-underwritten Security Purchase Plan capped at $15 million to facilitate retail participation.
Additional funds will be put to expanding Main Event, a family entertainment business in the US, and value accretive growth opportunities in other divisions.
Ardent Leisure improved its net profit by 5 per cent to $22.5 million in the first half of the 2014 financial year.
