LONDON Feb 11 British "no frills" gym operators
Pure Gym and the Gym Group are to merge to capitalise on growing
consumer demand for low-fee and flexible fitness-club
membership, the companies said on Tuesday.
The two private-equity owned companies aim to offer
affordable, contract-free memberships to their clubs, which
mainly house cardio and strength equipment and hold group
Pure Gym operates 61, 24-hour centres across the UK, while
the Gym Group has 42 sites. The merger will allow rapid
expansion of their network of gyms, the companies said in a
statement. Financial terms of the deal, which is awaiting
regulatory approval, were not disclosed.
Pure Gym Chief Executive Peter Roberts will become executive
chairman of the combined group and John Treharne, Gym Group
chief executive, will be CEO.
Pure Gym was bought by New York-based CCMP Capital Advisors
for an undisclosed amount last year. The Gym is owned by Phoenix
Equity Partners and Bridges Ventures.
A number of private equity firms have made investments in
the fitness industry in the last year.
In September TDR Capital agreed a 700 million pound ($1.2
billion) takeover of David Lloyd Leisure, one of Britain's
biggest health club chains. Two months later UK-listed 3i
took a stake in European budget chain Basic-Fit for 110
million euros ($150.1 million).