Pure Gym set to float on LSE
GYM chain Pure Gym has flexed its muscles with the announcement of a stock market debut.
The 163-gym chain is expecting to raise £190m on its admission to the official list of the London Stock Market.
It said it will use the proceeds to repay existing bank debt in full, making it more attractive to potential investors.
Pure Gym said the offer may include a partial sale of shares held by CCMP Capital Advisors and Hermes GPE as well as the group’s management team.
It was rumoured in April that the gym chain would float later in the year, with early estimates predicting a June debut, after appointing bankers Rothschild at the start of 2016.
Pure Gym was founded in 2008 by serial entrepreneur Peter Roberts, and the chain has now grown to 785,770 members. Originally from Ripon, Roberts founded Manchester-based hotel operators Golden Tulip UK, which was sold to Whitbread in 2007.
In May 2013, funds advised by CCMP and Hermes and certain senior managers acquired Pure Gym, and later that year chairman Tony Ball, former chief executive of BSkyB joined the management team.
In 2015 it turned over £125m and opened 27 gyms in the first half of 2016, of which 16 were conversions for former LA Fitness gyms, which was acquired in May 2015, bringing 43 sites to the group.
Tony Ball, chairman of Pure Gym, said: “Pure Gym’s growth from a start-up company in 2008 to undisputed market leader today is a story of disruption and shows how entrepreneurial vision can build real business success.
“When the company was founded the traditional gym market was moribund. It did not cater for modern gym users who are tech-savvy, want to be able to exercise at any time of day or night and want gyms they actually use, all without being locked into an expensive 12-month contract.
“Our successful model is built around our members’ needs and it has made gym membership accessible for hundreds of thousands of people and created a fast growing, successful company. Considering what the company has achieved in just eight years, I am hugely excited about its potential for the future.”
Humphrey Cobbold, chief executive officer of Pure Gym, said: “Pure Gym is ready to become a listed company. An IPO will enable us to be an even stronger counterparty for landlords, further raise our profile by building greater awareness of our strong brand, and provide a mechanism for incentivising the colleagues who have worked so hard to build the UK’s leading gym business.
“As well as opening more gyms, we will continue to invest in technology and the innovation it supports. Technological capability has been and will remain fundamental to our success and going forward offers opportunities to further differentiate the options and services we provide our members.”
Pure Gym follows in the footsteps of another chain, The Gym Group, which was valued at £250m in November 2015. The group’s had previously relinquished plans to merge following objections from the Competition and Markets Authority.
