David Lloyd gyms limbers up for £4bn London float

The owner of David Lloyd gyms is considering a £4bn London listing in what would be a major boost for the capital’s stock exchange.

TDR Capital, which also owns Asda, is eyeing up the initial public offering (IPO) despite a dearth of high-profile listings in recent years, City PM understands.

The private equity firm snapped up the luxury gym group for £750m in September 2013 and has since expanded the company to 149 clubs worldwide. 

At its most recent trading update, chief executive Russell Barnes said the firm has a “robust pipeline of new clubs and projects” and is underpinned by a “disciplined approach to investment”.

The Hertfordshire-based group swung to a profit of £32.3m in the year to December 2024, according to its most recent accounts, compared with a loss of £25.7m in the prior year. Revenues jumped 14 per cent to £860.8m.

David Lloyd operates gyms in the UK, Spain, Germany and a number of other European countries, and counted 882,000 members at its most recent trading update.

The group has been investing in its leisure offering in recent years, with spa retreats making up nine of its 14 “premiumisation” site upgrades last year.

David Lloyd has also sought to capitalise on the rapid growth of padel and has become the UK’s largest operator of the sport, owning 169 courts in the country and 253 across its global estate.

The luxury gym was founded by professional tennis player David Lloyd in 1982, before it was acquired by Premier Inn owner Whitbread for £182m in 1995. Whitbread sold off the gym group to London and Regional Properties for £925m in 2007, before the firm was snapped up by TDR six years later.

TDR bought budget supermarket Asda for £6.8bn in 2021 and acquired a controlling stake in US fast food chain Popeyes in 2024.

London’s stock exchange has seen a decline in big-ticket listings in recent years, but policymakers have launched a push to encourage retail investing in a bid to stoke interest in the UK’s capital markets.

But a number of high street chains could launch listings in London in the coming months, with Boots, Primark, and Waterstones said to be considering floats in the UK. 

David Lloyd’s potential float, first reported by The Times, would add to this cast of potential big-name listings.