Pure Gym acquires LA Fitness in "£80m deal”
FITNESS site operator Pure Gym has confirmed it has bought rival LA Fitness in a deal which will give it a much greater presence in the south of the country.
It had previously been reported that Leeds-based Pure Gym and Sports Direct boss Mike Ashley were battling it out to buy the chain in a deal worth about £80m. LA Fitness had previously sold 33 sites to Mr Ashley.
But Pure Gym has emerged successful, acquiring the firm’s 43 remaining sites across London and the South East to add to its existing network of 98 gyms.
The combined group expects to operate a network of more than 130 gyms, as it may sell some sites through choice or because it is required to do so by the Competition and Markets Authority, which must approve the deal.
Pure Gym is also planning to continue expanding organically and expects to open another 30 branches this year.
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.
“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.!
In May 2013, CCMP Capital Advisors, which specialises in equity investments and market buyouts of between $100m and $500m, bought a majority stake in Pure Gym.
Pure Gym was advised by Global Leisure Partners and LA Fitness was advised by Canaccord Genuity. PwC’s transaction services team provided due diligence on the deal.
