Exercise Professionals - The Gym Group buys up most of easyGym as it pivots to franchising...
26 Sep 2018 Exercise professionals: News, jobs and training
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

13 Jun 2018

The Gym Group buys up most of easyGym as it pivots to franchising
BY Liz Terry



The Gym Group is to buy 13 sites from easyGym in a deal worth £20.6m, with an additional £4.1 million being paid once lease extensions are agreed on two of the sites.

easyGym currrently has 16 locations, with another under development.

Speaking to Health Club Management magazine in March this year, easyGym CEO Paul Lorimer-Wing announced the company would pivot to a franchise model and target overseas expansion, with the aim of being in 10 countries by 2020 saying: "Through franchising, we want easyGym to become the leading big box, low-cost gym brand in the world by number of countries.”

The Gym Group acquisition will be part-funded by a £24m equity placing and part from the company’s banking facilities, with the deal expected to complete by 20 July.

Gym Group CEO, John Treharne said: “The easyGym portfolio of 13 well-invested gyms is highly complementary to our existing estate. We’re confident they will integrate quickly and easily into our business while enhancing our position in the low-cost market in London and extending our spread across the UK.

“We have a significant opportunity to increase each gym’s membership through a focus on member service, investment in facilities and through offering our premium pricing proposition – LIVE IT.

“This acquisition accelerates our expansion plans for 2018, as we advance towards our goal of 200 gyms by 2020,” he concluded.

The deal will give the Gym Group the opportunity to increase membership numbers, as easyGym’s current average levels are running at 4,850 members per site, against 5,477 for the Gym Group’s mature locations.

Eight of the sites are in London, with the remainder around the country. The locations being acquired had site EBITDA (excluding central costs) of £4.3 million in the 12 months to 31 March 2018, with revenues of £12.9 million.

The two sites requiring lease extensions will have the right to continue to use the easyGym brand, with the other 11 sites being rebranded.

The company says "post-conversion maturity" will be reached in a "shorter timeframe" than with a new-build, with conversions expected to cost £275,000 per location – lower than the recently acquired Lifestyle sites, which have been costing £470,000 per location. The Gym Group is anticipating a 20 per cent return on capital at maturity.

easyGym staff are expected to transfer to the Gym Group

If the acquisition falls through, the Gym Group says it will retain the proceeds of the placing for potential investment opportunities.

John Treharne announced recently he will hand over the CEO role to CFO Richard Darwin and take on a non-exec role. The transition will happen in September this year.

Read Health Club Management's recent interview with John Treharne here




Connect with
Exercise Professionals
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Even 10 minutes of light physical activity 'immediately improves memory'
Even 10 minutes of light physical activity 'immediately improves memory'   25 Sep 2018

Taking part in light or moderate exercise has an immediate, positive effect on memory function – according to new research by University California .... more>>
Petition calls on political parties to 'transform physical activity' for children
Petition calls on political parties to 'transform physical activity' for children   25 Sep 2018

The Sport and Recreation Alliance (SRA) has launched a petition calling on politicians of all parties to transform physical activity provision for .... more>>
UK adults spend 12 hours a week binge-watching TV, but only 90 minutes exercising
UK adults spend 12 hours a week binge-watching TV, but only 90 minutes exercising   24 Sep 2018

The average UK adult spends eight times as long watching on-demand television as they do exercising, according to a new report. A study of 2,076 .... more>>
Willmott Dixon secures contract to build Winchester's new £38m leisure centre
Willmott Dixon secures contract to build Winchester's new £38m leisure centre   24 Sep 2018

Winchester City Council (WCC) has chosen Willmott Dixon to build its £38m Sport and Leisure Centre at Bar End. The centre will be at the heart of the .... more>>
EXOS founder Mark Verstegen: 'gym operators need to realise the landscape is changing'
EXOS founder Mark Verstegen: 'gym operators need to realise the landscape is changing'   21 Sep 2018

Mark Verstegen, founder and CEO of human performance specialist EXOS, has said that health clubs and gyms need to become better at delivering results, .... more>>
Myzone secures Snap Fitness partnership deal
Myzone secures Snap Fitness partnership deal   21 Sep 2018

Fitness tech firm Myzone has signed a deal with Snap Fitness which will see the franchise operator's clubs in the US, Australia and New Zealand .... more>>
Company profile


Netpulse

Netpulse integrates fully with the leading fitness tracking devices and fitness apps, major cardio brands and member management software.

View full profile>>

Catalogue gallery


Featured Supplier

 Elemental Herbology launches  new Coconut Shell Cream Body Scrub Treatment

Elemental Herbology launches new Coconut Shell Cream Body Scrub Treatment

Elemental Herbology is delighted to announce a new, full-body exfoliating treatment designed to gently buff and polish, for healthy, glowing skin. More>>




in this issue

• PHE: prevention key to NHS strategy
• Jetts Fitness targets further UK growth
• GNH merges with Hotel Partnership



Latest jobs

Jobs Search



Trainee Duty Manager
Salary: Competitive Salary & Benefits
Location: Ollerton, Newark, UK
Company: Parkwood Leisure
Fitness Instructor
Location: Glasgow, UK
Company: énergie group
Zumba® Instructor
Salary: Self-Employed
Location: Elephant & Castle, London, UK
Company: Everyone Active
Aqua Aerobics Instructor
Salary: Self-Employed
Location:
Company: Everyone Active
Diary dates
Powered by leisurediary.com




24 Apr - 26 Nov 2018

MAPIC Russia

Expocentre, Moscow, Russia


23-27 Sep 2018

EAS (Euro Attractions Show) 2018

RAI Exhibition and Convention Centre, Amsterdam, Germany



Health Club Management magazine 2018 issue 9
Health Club Management
2018 issue 9

View issue contents
View on turning pages
Download PDF
  Promotional feature: Legend
With the right partner, changing your software systems should be a smooth process that can energise the business and lead to unexpected benefits More>>
  Interview: Mark Verstegen
The EXOS founder and CEO explains how his business improves the performance of athletes and employees in 30 countries and plans for expansion More>>


Health Club Management magazine 2018 issue 8

Health Club Management
2018 issue 8

View issue contents
View turning pages
Download PDF
  New Trend: Get stretched
Assisted stretching is emerging as a great addition to health club operations More>>
  Editor’s letter: Fittertainment
Liz Terry shares her thoughts   More>>


Published by The Leisure Media Company Ltd Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ. Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd