Blink Fitness announced that PureGym has been selected as a winning bidder for a substantial portion of the company’s assets following an auction in bankruptcy court. PureGym will pay $121 million in cash and assume certain liabilities.
PureGym will acquire Blink’s corporate operations and a substantial portion of Blink’s locations, with a focus on New York and New Jersey. PureGym in September reached an agreement to become the “Stalking Horse” bidder to support the auction with an offer of $100 million in cash.
“We are pleased that PureGym was selected as a winning bidder in our sale process, and we are excited to be moving forward with new owners who believe in our business and will deliver on our mission to democratize fitness for all,” said Guy Harkless, president and chief executive officer of Blink Fitness. “We are grateful for the dedication of our entire Blink Nation and their continued focus on delivering the best experience possible for our valued members. We appreciate the relationships with our partners and the tremendous loyalty of our members as we enter this new chapter.”
“The acquisition of Blink Fitness is transformational for PureGym in the U.S., a market we have been operating in since 2021,” said Humphrey Cobbold, CEO of PureGym. “It gives our Group a meaningful presence in the country and a strong foothold in the attractive New York and New Jersey area. U.S. expansion has been an important part of our growth plan, which is why we actively participated in the Chapter 11 process and entered into an APA with Blink Fitness. We have, over several months, spent a considerable amount of management time and resources getting to know the business, and the management team and have developed an excellent understanding of both its prospects and the opportunity it represents.”
He continued, “The American fitness market is the largest and most dynamic in the world. We are incredibly excited by the scale of opportunity and the chance to tailor and apply our proven model there. Through investment and upgrades, we plan to enhance the high-quality fitness experience Blink Fitness members currently enjoy. We are looking forward to working with the Blink Fitness team and can’t wait to get going so we can give more people access to high quality, affordable fitness.”
Agreement Details
Under the terms of the agreement, PureGym, whose investors include Leonard Green & Partners and KKR, will acquire Blink’s corporate operations and a substantial portion of Blink’s locations, with a focus on New York and New Jersey, for $121 million in cash. PureGym also intends to assume certain liabilities.
Blink continues to evaluate bids submitted for locations outside of New York and New Jersey.
The hearing to approve the sale is currently scheduled for November 6, 2024. The transaction is expected to close later this year.
Throughout the court-supervised process and as the company works to complete the transaction, Blink will continue to provide members with the high-quality fitness experience they have come to expect.
