PureGym, which operates more than 500 venues across the UK and Europe, has secured a £300 million ($400M) investment from private equity firm KKR to support expansion.
KKR will become a minority investor in the business alongside management and Leonard Green & Partners (LGP), who retain a majority ownership position.
Leeds-headquartered PureGym Group is behind PureGym, which “operated 291 gyms and had about 1.2 million members at the end of September 2021.” It is also behind Fitness World, which has “180 gyms with 389,000 members in Denmark and Basefit, a Swiss business with 40 gyms and 70,000 members.”
The PureGym Group reported Q3 results to bond investors in November, with “revenue ahead of the equivalent period in 2019 and profits bouncing back from the challenges of the pandemic.”
The company said it believed the conditions are now right for further development of its business. Following the investment from KKR, the group will have access to about £500 million in capital, which will enable opening of more sites in its current markets and continued international expansion.
PureGym also plans to use a “significant amount of capital” to strengthen its gym network and maintain and enhance its tech platform. Its brand is established in 40 sites in Switzerland and in Saudi Arabia, where the first of planned franchise sites are open and trading. It also said it would soon be in the US in three trial sites.
Humphrey Cobbold, chief executive, PureGym, said: “We are simply delighted to welcome today an investment firm of KKR’s stature—a firm I have known and respected for many years—as our new strategic partner. To have investors of the caliber of KKR and LGP supporting our business is a testament to the extraordinary efforts of every single colleague across our enterprise. It is also an endorsement of our overall strategy which is to become one of the leading players in the rapidly developing world market for gyms, fitness and activity.”
Blaine MacDougald, partner and co-head of KKR’s Strategic Investments Group, added: “We have followed PureGym closely over the last few years as it emerged as an outstanding performer in its sector, with an experienced management team well-positioned to take advantage of the global opportunity in health and well-being. This investment provides PureGym with flexible capital to support its growth and international expansion plans and we will draw on the full range of KKR’s global platform and operational resources to help them drive further success for the business.”
Closing of the investment remains subject to the satisfaction of customary conditions. Sanctuary Counsel is the public relations adviser to PureGym with KKR advised by Finsbury Glover Hering.
Photo courtesy PureGym
