CCMP Capital Advisors expects to triple its investment with the sale of Pure Gym Ltd, a source familiar with the transaction said.
Last week, Leonard Green & Partners said it would buy a majority of Pure Gym. The deal is valued at 640 million pounds ($842.8 million), the person said. Green is replacing CCMP as Pure Gym’s majority owner.
Launched in 2009, Pure Gym provides low-cost gyms to more than 950,000 members. The company has more than 190 gyms in the U.K.
CCMP invested in 2013, buying 80 percent of Pure Gym from Peter Roberts, the British entrepreneur and his co-investors, the Financial Times said.
In 2015, Pure Gym acquired LA Fitness, which had 43 clubs. One year later, Pure Gym dropped plans to go public, citing challenging IPO market conditions, according to press reports. CCMP earlier this year hired Harris Williams and Jefferies to oversee an auction of the company, Sky News reported in June.
CCMP stands to make 3x its money on Pure Gym, while the investment is expected to generate a 30 percent gross IRR, the source said.
Established in 2006, CCMP invests in sectors including consumer, industrial and healthcare. The PE firm used its second fund, which closed on $3.4 billion in 2007, to buy Pure Gym. CCMP’s latest flagship collected $3.6 billion in 2014.
So far this year, CCMP has inked deals for Eating Recovery Center, Hayward Industries and Truck Hero.
Pure Gym could not be reached for comment.
Action Item: Contact Pure Gym CEO Humphrey Cobbold at +44 3444 770-005
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