Sovereign Capital announces the £14 million acquisition of leading UK operator of Local Authority leisure centres

In its fifth deal this year, Sovereign Capital Limited ("Sovereign Capital") the independent mid-market UK private equity provider, announces that it has completed the £14m acquisition of DC Leisure Management Limited ("DC Leisure"), the second largest operator of UK local authority leisure centres.

The total funding comprises £7m of equity to finance the acquisition plus a further commitment to fund the group's expansion by organic growth and acquisition. Lloyds Bank Acquisition Finance has provided the debt funding.

Under outsourced management contracts, DC Leisure currently runs over 100 leisure centres in the UK and employs 6,800 staff. It serves a broad market, offering a range of products at competitive prices from large well-located facilities. DC Leisure is also a leading contractor in the emerging Leisure PFI market.

The management team will be led by Steve Philpott, previously Managing Director of David Lloyd Leisure, together with Sandra Richmond, Finance Director; Tim Hewitt, Business Development Director and Peter Kirkham, Technical Director. Ryan Robson and Simon Hitchcock of Sovereign Capital have joined the Board.

Commenting on the deal Ryan Robson, Director, Sovereign Capital said:

"We are delighted to back such a strong management team and have the opportunity to build further long-term relationships with the public sector. DC Leisure has an excellent reputation with a growing customer base. In addition we have committed further capital to invest in the emerging PFI market. The Government has allocated a total of £159m to Leisure PFIs and DC Leisure has the experience and track record to serve this market."