Pure Gym prepares to step on IPO treadmill

BUDGET Leeds gym chain Pure Gym is set to be planning an IPO in June.

The business first appointed bankers Rothschild in January, to review its options on an exit strategy.

The float will value the business at £500m, though it will come at a difficult period when the UK is still in the midst of the EU referendum debate, leading to uncertainty in the markets, according to The Telegraph, first reported by Sky News.

Investment banks Jefferies, JP Morgan, and Credit Suisse are reportedly dealing with the float.

Launched by serial entrepreneur Peter Roberts, Pure Gym’s first site opened in 2009. When the business reached 65 sites in 2013, it was acquired by private equity group CCMP in a £118m deal.

Pure Gym acquired LA Fitness last year. It was valued at between £60m and £80m.

It follows the trajectory 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.