Pure Gym and The Gym Group Agree to Merge

The british budget fitness operators Pure Gym and The Gym Group today announced plans to merge amid growing membership at fitness clubs and growing consumer demand for low-fee, high quality and flexible health and fitness club memberships.

Pending regulatory approval, the combination will create a national gym operator with a compelling consumer price-value proposition in the UK fitness market.

The merger creates a new company with more than 100 clubs and 500,000 members. "This means that the new group is likely to find among the five largest providers in Europe by members even without further growth at the end of 2014”, states Niels Gronau, fitness market expert from the edelhelfer GmbH.
The planned merger will reinforce the superior customer proposition offered by both companies, extending the number of gyms available nationally to new and existing members. The merger will also enhance the ability of the combined company to continue to rapidly expand its network of gyms. The transaction coincides with growing consumer awareness about the health benefits from improved fitness, along with increased competition and wider gym access in the UK.

Peter Roberts Chief Executive of Pure Gym, said: “This agreed deal unites two innovative players in the fast-changing gyms sector, where the low-priced model is improving consumer choice and contributing to better exercise levels across the country. We expect our complementary brands and locations to encourage even more people to join gyms.”

John Treharne Chief Executive of The Gym Group, added: “Customers want total flexibility and value-for-money options when it comes to keeping fit. This enlarged business, combining great facilities and excellent trainers, will provide a compelling alternative to existing gym providers.”

As part of the merger agreement, Peter Roberts of Pure Gym will become Executive Chairman of the new group, whilst John Treharne will be Chief Executive.

The new company will be a combination of the current Pure Gym, owned by CCMP Capital Advisors, LLC and The Gym Group owned by Phoenix Equity Partners and Bridges Ventures. Financial terms have not been disclosed.
In a joint statement, Tom Walker, UK Managing Director of CCMP Capital Advisors (UK) II Limited, and David Burns, Partner at Phoenix Equity Partners, said: “We are delighted to be supporting the creation of a fast-growing gyms network, which is poised for further expansion as the fitness market continues to evolve in the UK.” The two companies will continue to operate independently until regulatory approval and completion terms are finalised.

Source: press release The Gym Group
Pictures: The Gym Group

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