Virgin Active is poised to expand its portfolio after announcing that it had agreed a deal to acquire rival health and racquet club operator Esporta in a deal worth £77.6m.

The purchase of Esporta Racquets and Non-Racquets Holdings will see 55 locations - 35 health and fitness and 20 racquet clubs - rebranded and added to Virgin's existing estate. Societe Generale is to retain ownership of New Esporta Holding (NEH) as part of the deal, which is chaired by Richard Segal and owns 17 freehold or long leasehold racquet clubs.

Virgin Active's main operating company will take on a 25-year lease on the NEH assets, which will see the Sir Richard Branson-owned operator pay rent of £13.1m a year. Esporta chief executive officer John Cleland, who joined the business in December 2009 as part of Societe Generale's efforts to strengthen the management team, will now join Virgin.

The transaction is subject to the approval of the Office of Fair Trading, although Segal told Leisure Opportunities it is hoped that the deal will be finalised within 2-3 months. "The combination of Virgin Active and Esporta is a compelling one," said Segal. "There is a good spread of clubs geographically, with a negligible overlap."

Cleland said: "Since Societe Generale took ownership of the business in June 2009, Esporta has experienced a dramatic improvement in membership trends, with a return to growth." Virgin Active chief executive Matthew Bucknall added: "The acquisition of Esporta follows our takeover of Holmes Place almost five years ago, which was a transformational and highly successful deal that allowed Virgin Active to establish a strong footprint in London."