The two businesses, both of which were founded in the last seven years and are backed by UK private equity firms, are hoping to capitalise on what has been identified as a ‘growing consumer demand’ for low-cost flexible fitness club memberships.
Founded in 2009, Pure Gym has 61 gyms which operate 24 hours a day – with funds affiliated with CCMP Capital Advisors buying out a majority stake in the business in May 2013. Magenta Partners is also a venture capital supporter.
Neither gym chains have contract commitments and focus on cardio with strength training alongside a range of classes.
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- Gym set up by former rugby league player gets £5 million
- Virgin gets active
According to a statement, the two companies will continue to operate independently until regulatory approval is completed on the undisclosed transaction. There are no plans in place yet regarding what the combined business will be called on completion.
Pure Gym CEO Peter Roberts says that the deal brings together ‘two innovative players’ in the gym sector – a market which is ‘improving consumer choice’. Roberts also expects the combined business to encourage more people around the UK to join gyms.
Under the terms of the deal, Roberts will serve as executive chairman of the merged entity, while The Gym Group CEO John Treharne will stay chief executive.
Treharne comments, ‘Customers want total flexibility and value-for-money options when it comes to keeping fit.
‘This enlarged business, combining great facilities and excellent trainers, will provide a compelling alternative to existing gym providers.’