CVC Capital Partners has agreed to sell its 51% interest in an international health club operator Virgin Active to South African investment firm Brait, in a transaction that values the business at $1.94bn (£1.3bn).

In addition, Virgin Group will be selling 29% stake of its shareholding.

Following this, Brait will own 80% of Virgin Active and Virgin Group will retain 20%, excluding management.

The transaction, subject to the approval by the South African and Namibian competition authorities, is expected to complete over this summer.

The existing management team will be retain and will be re-investing alongside Brait.

CVC invested in Virgin Active in 2011 to help company to expand its portfolio of clubs internationally and to look for the right acquisitions to grow.

CVC funds, raised from pension funds, financial institutions and various other partners, seek to identify attractive investments and then develop sustainable, long-term value in close partnership with management teams.

Pev Hooper, Partner at CVC, said: "CVC have enjoyed a highly successful partnership with Virgin Group over the past three and a half years, working closely with Virgin Active's management to deliver a sustained period of international growth. The business is now well positioned to maximise the potential that exists globally, under its new ownership by Brait and Virgin."

Brait is one of South Africa’s largest private equity firms.

Brait's experience in long term investments globally, as well as in Virgin Active's biggest market, South Africa, fits with Virgin Active's aspirations for international growth in both emerging and developed markets, and will enable the company to accelerate its proven strategy.

John Gnodde, CEO of Brait South Africa, said: "Virgin Active is a business that we have tracked for many years, and we welcome the opportunity to invest in the company, alongside one of the world’s most renowned entrepreneurs.”

"Virgin Active’s long-tenured and experienced management team, most of whom have been part of the company since its founding, have delivered impressive performance throughout the company’s history. Virgin Active’s successful track record, high cash generation and exciting growth prospects in both emerging and developed markets make this an attractive opportunity for Brait and its shareholders. We look forward to being a part of Virgin Active’s success over the long term,” he said.

Virgin Active's first club opened in 1999 and, since then, it has grown to become the leading international global health club operator with over 1.3 million adult members, 14,000 employees and 267 clubs spanning four continents and nine countries.

Paul Woolf, Group CEO of Virgin Active, said: "Virgin Active has grown to become the leading international health club operator, with strong positions in South Africa and Europe, as well as an exciting foundation for future growth in Asia Pacific.”

“This transaction will enable us to accelerate our proven strategy of continuous improvement in our member proposition to deliver organic growth, and of opening clubs both in existing and new territories. We are delighted that Brait will become our lead investor, alongside our long-term shareholder, Virgin Group," he said.