Blink Fitness announced that it reached an agreement with Pinnacle U.S. Holdings, a subsidiary of PureGym, Ltd., a global gym operator, to acquire Blink’s corporate operations and a substantial portion of Blink’s locations, focused on New York and New Jersey.
The agreement between the companies is subject to court approval and gives PureGym “stalking horse” status ahead of a scheduled auction on October 28 if competing bids are received.
“We are pleased to reach this agreement with PureGym, which marks an important step in our sale process,” said Guy Harkless, President and CEO of Blink Fitness. We are confident that Blink’s foundation as an affordable fitness brand will provide a strong base for new ownership to build upon. We know how important fitness is to those who choose to work out at Blink, and we continue to go the extra mile for all of our members. On behalf of the management team, I want to thank the entire Blink Nation for their continued focus, commitment and hard work that has continued unabated throughout the filing period.”
Humphrey Cobbold, CEO of PureGym, said, “We have long admired Blink for the premium and affordable fitness experience that the team has delivered and their commitment to helping members improve their life through fitness. This agreement to be the stalking horse bidder in the court-supervised sale process lays the foundation for PureGym to successfully expand its footprint in the U.S., supporting our purpose-driven mission to inspire a healthier world at an accessible price.”
As part of its expansion into the U.S. market, PureGym reported plans to invest in facility upgrades at Blink Fitness locations that align with PureGym’s mission to “inspire a healthier world by providing accessible, high-quality fitness options.”
Agreement Details
On August 12, 2024, Blink Fitness announced that it had decided to commence an “efficient and value-maximizing sale process to position the business for long-term success.” To facilitate the sale process, the company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
In connection with the Chapter 11 filing, Blink Fitness entered into a stalking horse agreement with PureGym, whereby PureGym, whose investors include Leonard Green & Partners and KKR, would acquire Blink’s corporate operations and a substantial portion of Blink’s gym locations, with a focus on New York and New Jersey. The base purchase price is $105 million in cash. PureGym also intends to assume certain liabilities.
The agreement remains subject to higher or otherwise better offers, Court approval and other customary conditions.
While Blink’s Texas, Illinois and California locations are not included in the PureGym agreement, Blink “remains encouraged by the performance of these gyms and is actively continuing to explore the sale of these locations.”
Throughout the court-supervised sale process and as it transitions to new ownership, Blink Fitness reported that it will “continue to provide members with the high-quality fitness experience they have come to expect.”
Additional information regarding the company’s court-supervised process is available at BlinkFitnessFuture.com. Court filings and other information related to the proceedings are available on a separate website administered by the company’s claims agent, Epiq, at dm.epiq11.com/BlinkFitness.
Blink Fitness is represented by Young Conaway Stargatt & Taylor, LLP as legal advisor, Moelis & Company as financial advisor and Portage Point Partners as restructuring advisor, with Steven Shenker serving as Chief Restructuring Officer.
PureGym is represented by Latham & Watkins, LLP as legal advisor, PJT Partners as investment banker and RCS as real estate advisor.
Image courtesy Blink Fitness
