Pure Gym picks banks to handle £600m sale after aborted float

The owner of Britain's biggest fitness clubs operator has picked banks to steer it through a sale that could value it at up to £600m, less than a year after abandoning a lucrative stock market flotation.

Sky News understands that Pure Gym's main shareholder, CCMP Capital Advisors, has hired Harris Williams and Jefferies to oversee an auction of the company.

CCMP, which has controlled Pure Gym since 2013, is expected to kick off a disposal process in the next few months, although any softening in consumer spending amid another period of political uncertainty could see a further delay.

An outright sale of the company, which trades from more than 170 clubs, is seen as the likeliest outcome, with Harris Williams having previously been involved in auctions of Fitness First and LA Fitness.

Pure Gym aborted a plan to raise £190m from the sale of new shares last October, when it blamed post-EU referendum market jitters for its decision.

The company's relentless expansion comes after a period of turbulence in the UK gyms sector, with operators such as Fitness First being forced into financial restructurings and takeovers.

A successful sale of Pure Gym would crystallise a windfall for Sir Chris Hoy, the six-time Olympics gold medallist, who has a small shareholding in the business.

Announcing its 2016 results in March, Humphrey Cobbold, Pure Gym's chief executive, said: "Almost a million people currently enjoy our affordable and flexible offer and we've introduced a variety of different membership options to suit a wide range of personal circumstances.

"No operator in the history of the gym and fitness sector in the UK has ever achieved this scale of membership.

"For 2017, expansion remains our priority with plans for 20 to 25 openings this year in total.

"Despite our size, we retain a 'challenger brand' entrepreneurial spirit with a relentless focus on ensuring our offer appeals to 21st century consumers who want quality and value for money, the flexibility of a no contract offer and facilities they actually use."

A Pure Gym spokesman declined to comment on the appointment of advisers.