Former owner of Boots looks to bid in £600m Pure Gym sale
US private equity firm KKR, which took pharmacy giant Boots private in 2007 after an £11bn takeover, is understood to be bidding in the £600m auction of Leeds-based Pure Gym, Britain’s biggest chain of health and fitness clubs.
KKR is among a group of financial investors that are expected to make offers for Pure Gym ahead of a deadline on Thursday, Sky News reported.
The sale of Pure Gym comes a year after the company abandoned a public listing.
After announcing its intention to float last September, the following month, the business decided not proceed with an IPO after saying that pursuing a listing in a “period of market volatility” was not in the long-term interests of the company and its stakeholders.
The chain was expecting to raise £190m on its admission to the official list of the London Stock Market but abandoned the plan, blaming post-EU referendum market jitters for its decision.
In May this year, it was revealed that owners CCMP Capital Advisors were understood to be in discussions with banks to launch a review of its options.
A successful sale of Pure Gym would bring a windfall for Sir Chris Hoy, the six-time Olympics gold medallist, who is an investor.
Announcing its 2016 results in March, which saw membership rise by 152,000 to 822,000, chief executive Humphrey Cobbold said: “No operator in the history of the gym and fitness sector in the UK has ever achieved this scale of membership.”
Revenues for the year to December 2016 grew 28% to £159.9m, whilst EBITDA grew 41% to £39.5m.
Pure Gym was founded in 2008 by serial entrepreneur Peter Roberts. Originally from Ripon, Roberts founded hotel operators Golden Tulip UK, which was sold to Whitbread in 2007.
In 2007, Alliance Boots, one of the most famous names on the high street, became the first FTSE 100 company to be bought by a private equity firm after KKR won the bidding in an £11.1bn deal.
