Pure Gym and The Gym Group pump out merger deal

Two private equity-backed low-cost gym chains are merging to create an enlarged fitness offering throughout the UK.

Pure Gym and The Gym Group are uniting forces through a merger, forming a chain of 103 gyms.

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.

The Gym Group, two years older than Pure Gym, owns 42 gyms and saw Phoenix Equity Partners acquire a majority stake in 2013 having previously been backed by Bridges Ventures at launch.

Neither gym chains have contract commitments and focus on cardio with strength training alongside a range of classes.

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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.’

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for GrowthBusiness.co.uk from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

Related Topics

Fitness industry