Hong Kong lifestyle brand Pure Group has secured an investment from FountainVest Partners, a Chinese private equity firm, and Ontario Teachers’ Pension Plan. No financial terms were released; however, Bloomberg reported earlier this year that FountainVest was planning to acquire the business for more than US$400 million. Founded in 2002, Pure Group operates yoga, fitness and dining facilities, serving about 80,000 clients. Ontario Teachers’ Senior Managing Director, International, Jo Taylor said the deal will tap “strong growth opportunities in Asia’s premium fitness market.”
The Pure Group Secures New Investment Partners
December 18, 2017
Primed for Continued Growth as Asia’s Leading Wellness Brand
The Pure Group is pleased to announce today a new investment partnership with FountainVest Partners (“FountainVest”) and Ontario Teachers’ Pension Plan (“Ontario Teachers'”) as it fuels its growth in Asia.
FountainVest is a Hong Kong-based private equity firm backed by global institutional investors and has a broad investment portfolio that includes China’s #1 running mobile app Codoon, China’s largest lifestyle service app Meituan/Dianping, the China Joint Venture of the largest global sports talent agency WME/IMG, and China’s dominant digital billboard network operator Focus Media. Ontario Teachers’ is Canada’s largest single-profession pension plan with offices in Toronto, Hong Kong and London and a diverse global portfolio of assets. It has significant experience in the fitness sector, including health club chain 24 Hour Fitness and GNC, a leading global specialty retailer of health and wellness products. The Pure Group, founded in 2002 and headquartered in Hong Kong, is Asia’s leading wellness brand that encompasses yoga studios (Pure Yoga), online yoga video platform (MyPureYoga.com), fitness centres (Pure Fitness), raw organic healthy eating (nood food) and performance activewear (Pure Apparel), and is dedicated to helping people lead happier and healthier lives.
A Unique Opportunity in Time
The Pure Group just celebrated its 15th anniversary in 2017. With a base of increasingly health-conscious Asian consumers and an expanding focus on health as the new wealth, it is an opportune time for the business to evolve to its next phase.
“Our new partners have a very successful investment track record and some fantastic complementary businesses in their portfolio,” said Colin Grant, CEO & Co-founder of the Pure Group. “They understand and share our vision as the leading premium wellness brand in Asia, and contribute a valuable mix of international outlook and vast knowledge of the global market.”
FountainVest is committed to supporting the Pure Group for long-term success. “We are convinced that the market for health and wellness in Asia will continue to grow in the years ahead especially in emerging markets such as China, and Pure is in a prime position to capitalise on this amazing opportunity. With our broad networks in the region, we will support Pure to unlock its full potential and continue developing its professional team of experts,” said Frank Tang, CEO and Managing Partner of FountainVest.
“Pure is an industry leader, and investing alongside our regional partner FountainVest is a clear sign of our long-term commitment to Hong Kong and the Asian market,” said Jo Taylor, Senior Managing Director International at Ontario Teachers’. “There are strong growth opportunities in Asia’s premium fitness market and we look forward to using our sector expertise to support Pure in taking the next step.”
Unwavering Commitment to 360˚ Healthy Lifestyle
“There will be no change in my role and those of the entire senior management team. We will continue our operations as usual to drive the business forward,” Mr. Grant added, “And I am excited about the flourishing relationship of our Pure team working together with our new partners in reaching new heights of the business for many years to come.”
Bruce Rockowitz says, “The success of Pure over the last 15 years has been incredible, and it’s hugely rewarding to have partners of such high calibre on board. I’ll remain a shareholder and look forward to the continued evolution of the company.”
FountainVest Partners focuses on long-term oriented investments in industry leaders and works closely with management teams to create value in the areas of strategy, operations, finance, industry consolidation and governance.
Ontario Teachers’ Pension Plan is headquartered in Toronto with offices in London and Hong Kong, and has been investing strategically across a variety of asset classes around the world.
Pure Group will see no change for Colin Grant in his capacity as the company’s CEO. He and Bruce Rockowitz will remain as shareholders. The entire Senior Management team will remain with the Pure Group in driving its continued success.
Recent Growth of the Pure Group: In the last two years (2016 & 2017), the Pure Group has opened 7 new locations, including three yoga studios (one in each of Hong Kong, Shanghai and Singapore) and two fitness centres in each of Hong Kong and Singapore.
Milestones in 2016 & 2017:
Feb 2016: Pure Fitness at ICBC Tower in Central, Hong Kong
Mar 2016: Pure Fitness at PCCW Tower in Taikoo Place, Quarry Bay
– Pure Fitness 9th location in Hong Kong (including Pure South – The Pulse), Hong Kong
Jul 2016: Pure Yoga launches MyPureYoga
– a complimentary bilingual online yoga video platform
Pure Yoga at Asia Square Tower 2, Marina Bay
– Pure Yoga 3rd location in Singapore, Singapore
Nov 2016: Pure Yoga at Plaza 66 Mall, Shanghai
– Pure Yoga 2nd location in Shanghai, Shanghai
Jan 2017: Pure Fitness at Ocean Financial Centre, Raffles Place, Singapore
Sep 2017: Pure Yoga at Pacific Place, Admiralty
– Pure Yoga 9th location in Hong Kong (including Pure South – The Pulse), Hong Kong
Dec 2017: Pure Fitness at Ngee Ann City, Orchard Road
– Pure Fitness 3rd location in Singapore, Singapore
New openings for Spring 2018: The year 2018 will see more new openings of Pure Yoga and Pure Fitness across Asia, with a strengthened foothold in Hong Kong and steady growth across other cities including Shanghai, Beijing and Singapore.
Jan 2018: Pure Yoga at World Trade Centre, Causeway Bay
– Pure Yoga 10th location in Hong Kong (including Pure South – The Pulse), Hong Kong
Spring 2018: Pure Yoga at Grand Century Place, Mong Kok
– Pure Yoga 11th location in Hong Kong (including Pure South – The Pulse), Hong Kong
Spring 2018: Pure Yoga at Millennium City 5, Kwun Tong
– Pure Yoga 12th location in Hong Kong (including Pure South – The Pulse), Hong Kong
Spring 2018: Pure Yoga at Suntec City Mall, Suntec City
– Pure Yoga 4th location in Singapore, Singapore
Spring 2018: Pure Fitness at iapm mall, Shanghai
– Pure Fitness 1st location in Shanghai, Shanghai
Spring 2018: Pure Yoga at WF Central in Wangfujing, Dongcheng District
– Pure Yoga 1st location in Beijing, Beijing
About the Pure Group
Founded in 2002 and headquartered in Hong Kong, the Pure Group is Asia’s leading premium lifestyle brand that includes Pure Yoga, MyPureYoga.com, Pure Fitness, Pure Apparel and nood food. Pure Group currently has locations in Hong Kong, Shanghai, Singapore, Taipei and New York. Pure Yoga has a wide variety of yoga and meditation classes and private yoga programmes, including workshops with renowned teachers from all over the world. Pure Fitness offers the industry’s best from around the globe, encompassing strength and cardio training in addition to dynamic group classes led by passionate world-class instructors. Together with Pure Apparel’s performance activewear and nood food’s innovative organic health foods and cold-pressed juices, the Pure Group is an integrated community dedicated to helping people lead a happier, balanced 360˚ lifestyle. The Group currently has about 80,000 clients and more than 1,900 employees.
About FountainVest Partners
Founded in 2007, FountainVest Partners is one of the largest private equity funds dedicated to China related investment, with US$4.7 billion of capital under management and offices in Shanghai, Beijing and Hong Kong. It partners with champions and emerging leaders with a proven track record in delivering high growth. Combining the firm’s international standard of due diligence and investing best practices with local expertise of its investment and operations team, FountainVest takes a long-term and disciplined approach to create value for its domestic partners and international investors. fountainvest.com
About Ontario Teachers’ Pension Plan (Ontario Teachers’)
Ontario Teachers’ is Canada’s largest single-profession pension plan, with C$180.5 billion in net assets at June 30, 2017. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.1% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 318,000 active and retired teachers. otpp.com
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Photo courtesy of Pure International