Next Generation Clubs

January 05, 2005 07:36 ET

Next Generation Clubs - Purchase of the Harbour Club


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEXT GENERATION CLUBS

JANUARY 5, 2005 - 07:36 ET

Next Generation Clubs - Purchase of the Harbour Club

ATTENTION: BUSINESS & LEISURE EDITORS

LONDON, ENGLAND--(CCNMatthews - Jan. 05, 2005) -

New Bank Credit Facility of GBP 104 million

Next Generation Clubs, the leading racquets, health and fitness
provider, is to acquire the Harbour Club in Chelsea from Cannons for GBP
16.1 million.

Scott Lloyd, Managing Director of Next Generation, said: "This is a
unique opportunity to purchase what is unquestionably the most
prestigious family health and fitness club in Central London and is a
logical step as we develop the UK's highest-quality racquets and fitness
business."

The Harbour Club had earnings before interest, taxation, depreciation
and amortisation of GBP 2.4 million last year. The club, which is
adjacent to Chelsea Harbour, was built in 1993 and has 6,800 members.

The acquisition follows last month's opening by Next Generation of
Europe's biggest-ever racquets and fitness centre at Hatfield in
Hertfordshire. The Hatfield club is over 165,000 square feet and
includes bedroom and conference suites as well as a comprehensive
children's gym and activity programme.

Separately, Next Generation has negotiated a new GBP 104 million credit
facility with a syndicate led by Royal Bank of Scotland and also
including Allied Irish Bank, Bank of Ireland and HBOS. It replaces a GBP
90 million syndicated facility.

Denis Brosnan, chairman of Next Generation, said: "The new banking
syndicate means that Scott Lloyd and his team can accelerate the
development of new sites. With Hatfield and Chelsea, we will have 13
clubs up and running. We will open in Romford in May and we have a
pipeline of five further sites with planning permission. It is good to
see that the banks have confidence in our ability to develop a portfolio
of clubs of the highest calibre."

Note to editors

Next Generation Clubs is a private company which was founded in 1998. It
has 13 clubs operating in the UK with a further five in development. It
had sales of c. GBP 36 million in the year to December 31, 2004 and
ebitda of c. GBP 12m.

The chairman is Denis Brosnan who was Chief Executive and Chairman of
Kerry Group, the world's largest food ingredients business. He is also
Chairman of Horse Racing Ireland (HRI) and Chairman of Barchester, the
private pay healthcare business.

The Managing Director is Scott Lloyd who was 23 when he founded the
company, raising GBP 23 million in equity and GBP 54 million in debt.
The Strategic Development Director is David Lloyd, father of Scott
Lloyd, and the founder of David Lloyd Leisure, the UK's first chain of
racquet and fitness clubs. That business was floated on the stock market
by David Lloyd and subsequently sold to Whitbread.

In addition, there is a related business, Next Generation Clubs
(Pacific) which has some common directors and shareholders with Next
Generation Clubs and which operates three clubs in Australia.

Contacts

Next Generation Clubs
Scott Lloyd
+44 7775 758801

Powerscourt
+44 207 236 5615
Rory Godson
+44 7909 926 020

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