Acquisition of 18 gyms from Lifestyle Fitness
15 September 2017
The Gym Group Plc
("the Group")
Acquisition of 18 gyms from Lifestyle Fitness
Significant acceleration of new site rollout
The Gym Group ("TGG"), the fast growing, nationwide operator of 98 low cost gyms branded "The Gym", announces that it has acquired 18 gyms (1) from Lifestyle Fitness for a total cash consideration of £20.5m (the "Acquisition"). TGG has entered into a binding sale and purchase agreement with Competition Line (U.K.) Limited ("CLL") the owner of the sites and the deal is expected to complete on 29 September 2017.
TGG has grown rapidly since the opening of its first site in Hounslow in 2008 and has become the second largest player in the low cost gym market. It expects to open 20 new sites under its organic rollout programme in 2017, having opened 15 new sites in 2016 and 19 new sites in 2015.
The Group, as part of its stated strategy, has also sought to identify bolt-on acquisitions as a way of accelerating its rollout.
As a result of the Acquisition:
(1) The headline prices per month for the 18 sites being acquired mostly range between £20 - £25 per month for members not entering into contracts. As a result of the majority of no contract prices being greater than £20, The Leisure Database Company ("LDC") in its analysis of the market does not define Lifestyle Fitness as a low cost gym. Lifestyle also offers 12 month contracts where the headline prices per month mostly range between £15 and £20.
(2) In addition one site in London and one in Scotland
(3) Extracted from the accounts of Competition Line (U.K.)
John Treharne, CEO of The Gym Group, commented:
"Lifestyle is an excellent and complementary fit with our existing estate. These are well invested gyms in strong locations with an established membership. The acquisition strengthens The Gym Group's position in the Midlands and North in areas where we are currently underrepresented and accelerates our expansion plan. The addition of these gyms is anticipated to be significantly earnings enhancing by 2019."
For further information, please contact
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The Gym Group John Treharne, CEO Richard Darwin, CFO
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via Instinctif |
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Numis Oliver Cardigan Oliver Hardy Toby Adcock
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020 7260 1000 |
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Instinctif Matthew Smallwood Justine Warren |
0207 457 2020 |
Forward-looking statements
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, such statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements.
Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect subsequent events or circumstances following the date of this announcement.
Inside Information
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
This information is provided by RNS
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