Property firm London & Regional (L&R) has agreed to buy the Next Generation chain of health and fitness clubs for £101.7m (US$191.3m) in cash.

According to L&R, the deal was worth 185p a share and the group has received acceptances from shareholders owning issued shares amounting to 92.6 per cent.

Next Generation’s chair, Denis Brosnan, said: “We believe that this offer is in the best interests of Next Generation’s shareholders, members and employees. Ownership by the L&R group will enable the business to be taken on to the next stage of its development.”

L&R’s Chris King added: “We believe that the quality of the Next Generation business and its portfolio of assets will prove to be a positive addition to L&R.”

L&R beat rival bidders Esporta and leisure group Whitbread in order to buy the health and fitness club chain, which comprises 12 venues in the UK and was founded in 1996 by David Lloyd and son Scott after the sale of their David Lloyd Leisure group to Whitbread.

BDO Stoy Hayward LLP is acting for L&R while UBS is acting for Next Generation. Details: www.nextgenerationclubs.co.uk