Key facts
- Permira is reportedly preparing a £700 million bid for Third Space.
- Third Space operates 15 premium clubs across London.
- KSL Capital Partners, the current owner, is planning an auction sale.
- The sale could value the business at around £700 million.
- Third Space reported a turnover of £99 million in FY24.
- The company's adjusted EBITDA for FY24 was £26.3 million.
Private equity firm Permira is reportedly preparing a bid of approximately £700 million to acquire Third Space, a premium health and fitness group operating 15 clubs across London. The company's current owner, KSL Capital Partners, is planning to conduct an auction sale for the business, with Goldman Sachs potentially advising on the process.
Third Space was acquired by KSL in 2021 and has experienced strong demand for its memberships, with many clubs reportedly having waiting lists. In fiscal year 2024, the company reported a turnover of £99 million, representing a 43% year-over-year increase, and an adjusted EBITDA of £26.3 million. In 2021, Third Space secured £75 million in debt financing from Oaknorth and Searchlight Capital to support its expansion efforts. The potential sale values the business at around £700 million, corresponding to an enterprise value to adjusted EBITDA multiple of 26.6x for 2024.