Pure Gym, which is owned by CCMP Capital, has acquired fitness chain LA Fitness. No financial terms were disclosed. Global Leisure Partners advised Pure Gym on the transaction while Canaccord Genuity did likewise for LA Fitness.
29 May 2015, London – Pure Gym (“Pure Gym” or “The Company”), the UK’s leading gym operator, has completed the acquisition of LA Fitness and its 43 fitness clubs, in a combination that will extend the availability of affordable fitness centres to people across Britain, particularly in London and the South East.
Humphrey Cobbold, Chief Executive Officer of Pure Gym, said: “This transaction represents a good deal for members of both Pure Gym and LA Fitness as well as other consumers that are hungry for more affordable fitness options. Overall demand for affordable, high quality, and no-contract fitness centres is continuing to grow, served by a range of providers in a highly competitive market-place. With the addition of the LA Fitness sites, Pure Gym will continue to innovate with new facilities, technologies and services for our existing and prospective members.”
Martin Long, Chief Executive of LA Fitness, said: “Following a successful restructuring and CVA last year, our business is trading well, with strong customer loyalty and momentum. This is the result of exceptionally hard work by all of our teams, during a period of uncertainty and we are pleased to have secured a new-long term owner in Pure Gym. This transaction, will give users of LA Fitness access to high-quality fitness centres through a network of existing and new gyms. I am confident that our facilities and members will benefit from Pure Gym’s investment and attractive proposition.”
Subject to regulatory approval it is the company’s intention to convert most of the LA Fitness sites into Pure Gym gyms in a managed transition. This will require significant investment in refurbishing LA Fitness’s gyms and will provide its existing 123,000 members with access to a growing nationwide network of over 130 gyms. Pure Gym has been working constructively with the Competition and Markets Authority (CMA) and the transaction has been submitted to the CMA for review. During this period or until such time as the CMA gives Pure Gym permission to proceed with its plans, the businesses will be operated separately.
In addition to the acquisition of LA Fitness, Pure Gym plans to open further outlets under an organic expansion plan adding around 30 new sites this year. The company’s continued growth reflects the consumer appeal for Pure Gym’s pioneering model of affordable, high quality, and no-contract fitness centres. Financial terms of the transaction have not been disclosed.
Pure Gym was advised by Global Leisure Partners.
LA Fitness was advised by Canaccord Genuity.