PureGym Secures £300m KKR Investment

Dec 14, 2021 | News

PureGym, which operates more than 500 venues across the UK and Europe, has secured a £300m investment from private equity firm KKR to support expansion

KKR will become a significant 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 gym 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.

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Last month (November 2021) the group reported revenue of £194.1m for the nine months to 30 September 2021, with EBITDA of £70.9m.

The company said it believed the conditions are now right for significant further development of the business. Following the investment from KKR, group will have access to about £500m of capital, which will enable continued growth through the opening of more sites both in its current markets, as well as sustaining continued international expansion over the coming years.

PureGym also plans to deploy significant capital to strengthen the existing gym network, and maintain and enhance its technology platform.

Humphrey Cobbold, chief executive at 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 calibre 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.

Source: Insider Media

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