U.K. gym operator Pure Gym Ltd. has completed the purchase of LA Fitness Corp. and its 43 gym locations, continuing the consolidation among an increasingly competitive health and fitness sector.
Pure Gym, which operates 98 fitness centers across the U.K., did not disclose the purchase price. However, reports indicate that the value of the deal hovers around £80 million ($122 million).
The LA Fitness sites will be converted into Pure Gym clubs, bringing the club's sites to 141. Fitness First, owned by private equity firm Oaktree Capital Management and Sports Direct International plc in Shirebrook, England, were reportedly vying for the LA Fitness units.
Until the competition and markets authority approves Pure Gym’s plans, the businesses will operate separately. If the regulator decides that some of the LA Fitness gyms cannot be changed to Pure Gym clubs for competition reasons, it is likely that they will be sold on.
Pure Gym opened its first sites in 2009, in Leeds and Manchester, and currently plans to open 30 more gyms in 2015 along with the LA Fitness branches it now has. Global Leisure Partners LLP advised Pure Gym on the deal.
In 2013, Pure Gym became majority owned by U.S. private equity group CCMP Capital Advisors. Since then, there has been a number of PE firms inking deals in the fitness space. Silver Oak Services Partners invested in Vasa Fitness LLC in November and, after that, Leonard Green & Partners and TPG Capital teamed up to buy Life Time Fitness Inc. in a transaction valued at more than $4 billion - one of the biggest buyouts of the year.
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