Gym chain secures £42m investment to open 50 more sites
Leeds-headquartered low cost gym operator Xercise4Less has secured a £42m investment from Swedish credit provider Proventus Capital Partners to roll out the launch of around 50 sites.
It said the investment will allow it to open 10 more gyms by the end of the year and a further 40 over the following two years, achieving its goal of having 100 gyms by 2020.
Xercise4Less currently has 49 gyms across the UK and 300,000 members.
Jon Wright, founder of Xercise4Less, said: “The growth capital will allow us to open more gyms at a faster rate and provide more people the chance to get active. Our health clubs genuinely appeal to a mainstream audience.
“Unlike other budget operators we are not selling on price. We thrive on ‘changing lives’ and feel this ability to offer more than the consumer imagined they could receive is what will help us to continue disrupting the budget model and maintain the clear water between traditional and low-cost clubs.”
Daniel Sachs, CEO of Proventus Capital Partners, said: “The core of our strategy is working with entrepreneurs and helping them grow their business by providing them access to bespoke capital that suits their unique situation.
“The fitness industry has long been a focus area for us and we are delighted to become a strategic financial partner to Xercise4Less in their continued development.”
A team from Walker Morris, led by partners John Hamer and Ian Akitt, advised Xercise4Less.
They were supported by a multidisciplinary team including Nicola Parkinson, Thomas Mieszkowski, Laura Lister, Christopher Blair and Mark Byrne.
Hamer said: “Xercise4Less is a long-standing client of the firm. As such it has been a pleasure to see the company grow and succeed. We have advised Xercise4Less on a number of funding deals in the past, including investments from Business Growth Fund. This latest funding will provide the Company with further funding required to continue to expand and achieve its goals.”
