PureGym to acquire Fitness World

RNS Number : 6538W

Pure Gym Ltd

12 December 2019

 

PureGym to acquire Fitness World

Combined business will be second largest gym and fitness operator in Europe providing flexible, affordable fitness to 1.7m members from 500 facilities across the UK, Denmark, Switzerland and Poland

12 December 2019, London - PureGym, the UK's largest gym operator, is to acquire leading European gym and fitness operator Fitness World. This transformational deal will give PureGym significant scale in Continental Europe and rapidly accelerate its international expansion, which includes plans for trial sites in the USA.

PureGym has opened over 70 sites since being acquired by funds controlled by Leonard Green & Partners (LGP) in 2017 and will be trading from 263 locations in the UK by the end of this year. It has continued to pioneer new innovations such as digital fitness studios, online fitness training through its app and new formats such as PureGym Local which targets smaller communities such as Barnstable, Bridgewater and Saffron Walden. Further expansion in the UK is planned for 2020 and beyond. Backed by LGP, international expansion has also been a strategic focus in order to diversify, gain scale advantages and access to additional opportunities for growth.  

PureGym and Fitness World are well matched as partners, sharing market leadership positions in their main markets (UK and Denmark), robust financial performance and a modern, technology enabled customer offer based around high quality, affordable gyms that can be accessed flexibly, usually on a 24/7 basis. The combined group will be trading from over 500 sites and in that regard will be second only to Basic Fit in the European market.

Humphrey Cobbold, Chief Executive Officer of PureGym, said: "This transaction brings together two well matched, successful market-leading businesses and the combination creates a powerful platform from which to accelerate growth and deliver on our purpose of getting even more people, more active, more often.  The acquisition of Fitness World is a transformational deal for PureGym and will support our long-held ambition to become a leading international gym and fitness operator. Fitness World is a business we know well and have long admired. The team there have done an outstanding job in building unparalleled leadership in the highly attractive Danish market with exciting growth positions in Switzerland and Poland.  My management team and I are genuinely excited to welcome Steen and all his colleagues in Denmark, Switzerland and Poland to our 'fitness family'.  We firmly believe that there is a great future ahead for all of us."

Steen Albrechtslund, CEO of Fitness World, said: "I am delighted to be partnering with PureGym, a company that has, in just 10 years, fundamentally changed fitness provision in the UK. Their decision to invest in Fitness World is testament to the business we have built, which is the overwhelming market leader in Denmark and a growing player in Switzerland and Poland. Like PureGym we are passionate about making fitness more affordable and accessible. We believe that the combined business will create an even more impactful business, enabling us to take our attractive proposition to more people across Europe."

The transaction is expected to be completed in early 2020 subject to standard completion conditions. More information relating to the transaction can be found at https://corporate.puregym.com/

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Media enquiries: Teneo - Robert Morgan/Hamish Docherty, 020 7420 3140 or [e-mail]  

Notes to editors

1.      PureGym is the UK's leading gym operator providing low-cost and high-quality fitness facilities for over one million members spread across 253 sites (a further 10 will be open by the end of this year). PureGym was launched in 2009 and pioneered the model for affordable, flexible, high-quality fitness clubs in the UK. Members pay monthly and have no contractual commitment. Most of its gyms are open 24/7 and offer a full range of top of the line equipment including cardiovascular equipment, fixed-resistance and free weights. Each gym typically offers over 220 pieces of fitness equipment and over 50 group exercise classes each week delivered by around 2,500 personal trainers. In November 2017, affiliates of Leonard Green & Partners, L.P. acquired a controlling interest in the business. In 2018 PureGym had revenues of £228m and EBITDA of £73m.

2.      Fitness World is the largest fitness provider in Denmark, with operations in both Switzerland and Poland. Founded in 2005, it has grown to become one of Europe's leading value fitness providers, with over 230 gyms and more than 600,000 members. Fitness World sites offer members affordable, flexible and high-quality fitness facilities, most of which are available 24/7. Opening its first site in Copenhagen, Fitness World has increased its market share of the European value market both organically and through the acquisition of Condizione in Poland in 2015 and then Basefit in Switzerland in 2018. In addition to its international estate of gyms, Fitness World also has its own sports nutrition brand, Functional Nutrition, and bespoke member fitness app. In 2018 Fitness World had revenues of £175m and EBITDA of £38m.

 

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