It has been widely reported that Richard Branson’s Virgin Active health and fitness chain is in advanced talks to acquire the UK assets of rival chain Holmes Place.

Industry analysts have estimated that the combined business, which would be branded Virgin Active, could be worth up to £1bn on the stock market and be one of the country’s biggest health club groups.

Holmes Place – which has 48 clubs in the UK – is currently owned by private equity companies Bridgepoint Capital and Permira, who bought the chain in 2003 for £210m. The two companies would retain control of Holmes Place’s operations in Germany, Switzerland and Austria.

In 2002, Bridgepoint bought a stake in Virgin Active worth £110m in order to fund the fitness chain’s expansion and Virgin bought it back in October last year for £135m. Details: www.holmesplace.com