11/07/2001
Health and golf club operator Crown revealed a £6.2m acquisition which prompted chief executive Steve Philpott to concede that 'we'll be looking for another deal before the year end'. Crown purchased 'Trainstation', which has three health clubs in the north west of England, for £6.2m. Located in Manchester, Chester and Southport, all three have pools, gyms and food and beverage facilities and will be consolidated into its 'Clubs' division. The deal brings over 8,800 new members into the fold, taking Crown's total membership to 74,800 from 36 health clubs and 8 golf clubs. 'There is room for growth and plenty of scope at all three clubs' said Philpott, 'and the clubs are an addition for us geographically'. He also explained that the deal 'is a further step towards our year end goal of 100,000 members'. £5.063m will be paid in cash, with £500,000 deferred till July 2002 and £50,000 until July 2003. Crown Sports is also issuing 3,548,387 5p shares at 31p and will take on about £2.2m in liabilities on completion. The shares were unchanged at 25.25p at the bell.
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