Pure Gym completes acquisition of LA Fitness

Pure Gym, the UK’s leading gym operator, has completed the acquisition of LA Fitness and its 43 fitness clubs, in a deal that will increase the number affordable gyms across Britain.

As part of the transaction, the gym chain, based out of Leeds, is aiming to convert most of the LA Fitness sites into Pure Gym clubs in a managed transition.

Substantial investment will be required to refurbish LA Fitness’s gyms, as will the task of providing its existing 123,000 members with access to a growing nationwide network of over 130 gyms.

Pure Gym has been working constructively with the Competition and Markets Authority (CMA) and the acquisition has been submitted to the CMA for review. Until this review is completed, both businesses will continue to operate separately.

In addition to the acquisition of LA Fitness, Pure Gym hopes to further expand with the opening of 30 or so more gyms by end of year, and currently operates out of 98. This marks significant growth within the company, which last month reported an increase of 49% in revenue to £68.6m, compared with £46m in 2013, while underlying profits also rose by 58% to £22.6m.b

Humphrey Cobbold, Chief Executive Officer of Pure Gym, said: “This transaction represents a good deal for members of both Pure Gym and LA Fitness as well as other consumers that are hungry for more affordable fitness options. Overall demand for affordable, high quality, and no-contract fitness centres is continuing to grow, served by a range of providers in a highly competitive market-place. With the addition of the LA Fitness sites, Pure Gym will continue to innovate with new facilities, technologies and services for our existing and prospective members.”

Martin Long, Chief Executive of LA Fitness, said: “Following a successful restructuring and CVA last year, our business is trading well, with strong customer loyalty and momentum. This is the result of exceptionally hard work by all of our teams, during a period of uncertainty and we are pleased to have secured a new-long term owner in Pure Gym. This transaction, will give users of LA Fitness access to high-quality fitness centres through a network of existing and new gyms. I am confident that our facilities and members will benefit from Pure Gym’s investment and attractive proposition.”

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