In an institutional buyout, a cash offer for health and fitness company, Holmes Place, has been made by Health Club Group.

The offer, unanimously accepted by the independent directors, is worth £200m - the shares are being bought for £25.4m, plus £175m in debt assumed.They believe the offer fairly values the company and provides 'an opportunity for Holmes Place shareholders to derive fair value from their investment when the company's future prospects are uncertain.'

Should shareholders not accept the offer, Holmes Place will have to renegotiate its banking arrangements in order to continue trading and there is no guarantee that its banks will be willing to do so.If the offer is completed, Holmes Place will be effectively controlled by funds managed or advised by venture capitalist groups Bridgepoint and Permira.

The HC Group board consists of Holmes Place chief executive, Allan Fisher and non-executive director, Lee Ginsberg and four representatives of the investors - Guy Weldon, Michael Black, Charlie Troup and Ian Sellars.Fisher and Ginsberg will remain in their positions with Holmes Place and a spokesperson for Bridgepoint Capital said the health club chain's management team would be 'bolstered at a later stage'.

Bridgepoint originally offered 175p per share for the company last year but Cannons Group subsequently offered 200p. This bid was later withdrawn.