Low-cost fitness operator The Gym Group today announced it has acquired 18 gyms from fellow budget chain Lifestyle Fitness for the sum of £20.5m.
The deal, which is expected to complete on 29 September, forms part of the company’s rapid expansion plans and increases the size of The Gym Group’s portfolio from 98 to 116 clubs, with an additional 20 new sites earmarked for opening by the end of 2017.
CEO John Treharne told Health Club Management: “We see this as a really exciting opportunity for us to further our growth and it’s a key part of our strategy. The bulk of our expansion has been organic rollout, with 15 per cent of our estate coming from acquiring existing gyms.”
He added: “We’re focused on quality growth and will continue to take advantage of these types of opportunities as they materialise.”
The company, which opened its first site in 2008, has gyms throughout the UK. With 40 per cent of its existing sites located in and around the capital, the acquisition of the Lifestyle Fitness gyms, which are all based in the north and Midlands, further strengthens the operator’s position outside London, according to Treharne.
Of the 18 new gyms, 10 will be immediately converted to The Gym Group brand. The remaining eight will continue to operate as Lifestyle Fitness gyms, with plans to gradually rebrand them over time.
