Exercise Professionals - The Gym Group buys up most of easyGym as it pivots to franchising...
19 Dec 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
Virgin Active reopens Mayfair club
Virgin Active reopens Mayfair club   18 Dec 2018

Virgin Active has reopened its Mayfair club with a renewed focus on group classes. Hosting more than 200 classes each week, the club has introduced .... more>>
£2.5m study to chart benefits of exercise for prostate cancer sufferers
£2.5m study to chart benefits of exercise for prostate cancer sufferers   17 Dec 2018

The National Institute for Health Research (NIHR) is investing £2.5m in a study to find out whether long-term exercise can help tackle the side .... more>>
Digme founder: 'pay-as-you-go model will become more prominent'
Digme founder: 'pay-as-you-go model will become more prominent'   17 Dec 2018

Geoff Bamber, founder of boutique fitness chain Digme, predicts that the industry will see a number of pay-as-you-go operators entering the sector – .... more>>
EMD UK names industry veteran Nigel Wallace as chair
EMD UK names industry veteran Nigel Wallace as chair   14 Dec 2018

EMD UK, the national governing body for group exercise, has appointed fitness industry veteran Nigel Wallace as its new chair. Wallace spent eight .... more>>
Play and 'fun activities' should be available throughout life to improve health and wellness
Play and 'fun activities' should be available throughout life to improve health and wellness   13 Dec 2018

Experts have urged governments and industry to increase opportunities for play and fun physical activities throughout life – especially in older years .... more>>
Parkrun secures £3m grant from Sport England
Parkrun secures £3m grant from Sport England   13 Dec 2018

Sport England is to invest £3m in the popular Parkrun movement, with a focus on helping more women and people from lower socio-economic groups to get .... more>>
Company profile


Jordan Fitness

As a specialist in Functional Fitness Equipment our range covers Free Weights, Performance, Studio, Combat, Flooring, Education and much more.

View full profile>>

Catalogue gallery


Featured Supplier

Matrix Fitness launches range of Target Training Cycles to UK market

Matrix Fitness launches range of Target Training Cycles to UK market

Matrix Fitness is set to transform the indoor cycling class with the launch of its Target Training Cycles. More>>




in this issue

• Third of children live sedentary lived
• Victus Soul opens first studio in London
• Brutalist building to reopen as luxury hotel



Latest jobs

Jobs Search



People Team Administrator
Salary: Competitive Salary & Fantastic Benefits
Location: Surrey, England, UK
Company: The Gym Group
Food & Beverage Assistant
Salary: National Minimum Wage
Location: Cardiff, UK
Company: Legacy Leisure
Food & Beverage Assistant
Salary: National Minimum Wage
Location: Cardiff, UK
Company: Legacy Leisure
Assistant Regional Director
Salary: Circa £48,000 per annum
Location: Oxfordshire, UK
Company: Parkwood Leisure
Diary dates
Powered by leisurediary.com

15 Jan 2019

Prospects 2019

Expedia HQ, London, United Kingdom


15-17 Jan 2019

EAG International

ExCel London Exhibition Centre, London,



Health Club Management magazine 2018 issue 11
Health Club Management
2018 issue 11

View issue contents
View on turning pages
Download PDF
  Wellness: Reimagining ageing
A new report tells us that people should be getting more active as they age, not less. We take a closer look at the facts and why we need to transform perceptions of ageing More>>
  Promotional feature: Active IQ
Putting our nation’s mental health first More>>


Health Club Management magazine 2018 issue 10

Health Club Management
2018 issue 10

View issue contents
View turning pages
Download PDF
  IHRSA update: The IHRSA Global 25
IHRSA ranks the world’s top fitness operators by revenue growth, unit growth and number of members More>>
  Supplier showcase :
Projects from Pavigym and Matrix  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