énergie cancels IPO and opts for private equity deal

Image: énergie chief executive Jan Spaticchia

Health club franchise énergie group has withdrawn from its planned initial public offering (IPO) due to the combination of volatile market conditions and a "very attractive offer" from a private equity firm.

Énergie, which operates 98 clubs across six countries, had previously set out plans to list on the London Stock Exchange's Alternative Investment Market (AIM).

The IPO was to take place by means of a reverse acquisition by Hubco Investments Plc.

In a statement, however, énergie CEO Jan Spaticchia said that the private equity offer is seen to "more appropriately" recognise the value of the group than is likely to be the case with the current state of equity markets.

As a result, the board made the decision that the private equity deal provided the most desirable structure to fund the next stage of the company's development.

Spaticchia said: "This has been a difficult decision to make. We were looking forward to being a listed company and believe it would have provided significant benefits as we embark on our planned expansion of 80 additional Fit4less clubs (énergie's budget club arm).

"However, the offer that we have received against the backdrop of uncertain market conditions made this the right choice. We do not rule out a listing at some stage in the future."

In the financial year to September 2011, the énergie group of companies delivered profit before tax and provisions of £1.5m on a turnover of £4m and network turnover of around £23m.