Freshfields Bruckhaus Deringer, Slaughter and May and Gibson Dunn & Crutcher have taken lead roles on private equity group CVC Capital Partners' acquisition of a controlling stake in Virgin Active.

Freshfields advised the acquirers on the deal, which values the fitness chain at around £900m. The magic circle firm fielded a team led by London corporate partners Tim Wilmot and Chris Bown.

Richard Branson's Virgin Group, which will retain a 49% stake in the company, instructed Slaughter and May on the deal, with the firm's team led by corporate finance partner Gavin Brown.

Meanwhile, Gibson Dunn advised Virgin Active's management team on the deal, which is expected to complete in the fourth quarter of 2011. The firm's team was headed up by corporate partner Nicholas Aleksander, who joined the US firm in 2000 from Travers Smith Braithwaite.

The mandate for Freshfields follows last year's lead role on CVC's purchase of a 28% stake in Merlin Entertainments Group, a deal which valued Merlin – the world's second-largest amusement parks operator – at £2.25bn.

Freshfields' Wilmot commented: "We are delighted to have helped CVC with its investment in Virgin Active, a fantastic business with growth plans which CVC is well-placed to support.

"Like CVC's investment in Merlin Entertainments last year, this shows that there are excellent opportunities for private equity investors to help successful businesses achieve their ambitions.'

Virgin Active is planning to use the deal as a springboard for growth in Asia-Pacific region, with chief executive Matthew Bucknall saying in a statement that CVC's international network would help accelerate expansion into new markets.

The deal comes just three months after Virgin Active acquired rival gym chain Esporta from Societe Generale for £78m, with SNR Denton, Clifford Chance and Linklaters taking lead roles.

Photo credit: banjaxx on flickr.com.

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