Pure Gym bounces back from failed IPO with plans for £500m sale
Leeds fitness club chain Pure Gym, which abandoned plans for a stock market listing last year, is understood to be considering a £500m sale.
After announcing its intention to float in 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.
Now, owners CCMP Capital Advisors, is understood to be in discussions with banks to launch a review of its options, according to Sky News.
Sky News reported that a source close to the situation said that another attempt to list on the stock market was “not totally out of the question”.
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.
Cobbold added: “For 2017, expansion remains our priority with four new gyms open already and plans for 20 to 25 openings this year in total. Despite our size, we retain a ‘challenger brand’ entrepreneurial spirit with a relentless focus on ensuring our offer appeals to 21st century consumers who want quality and value for money, the flexibility of a no contract offer and facilities they actually use.”
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.
