Blink Fitness acquired by Puregym
Context
Structured as a distressed asset acquisition under Chapter 11 bankruptcy procedures, PureGym secures the operational core and regional network of Blink Fitness for a total purchase price of $121 million. Executed through the U.S. Bankruptcy Court for the District of Delaware following an initial filing in August 2024, the transaction enables PureGym to acquire Blink Fitness's corporate operations alongside 67 fitness clubs situated exclusively across New York and New Jersey. PureGym, backed by institutional shareholders Leonard Green & Partners and KKR, initially explored potential takeover transactions for Blink Fitness in 2018 and evaluated an acquisition in 2022 when parent company Equinox sought between $250 million and $300 million. Following the distress of Equinox's subsidiary in July 2024, PureGym formalized a stalking horse bid of $105 million on September 9, 2024, to anchor the court-supervised auction. During the three-day bankruptcy auction held in New York in late October 2024, PureGym prevailed over a competing bid from Planet Fitness and its regional franchise partner Supreme Fitness, successfully defending its winning position in a subsequent court hearing against unsecured creditor objections. Under the strategic perimeter defined by outgoing Chief Executive Officer Humphrey Cobbold and incoming Chief Executive Officer Clive Chesser, PureGym intentionally excluded Blink Fitness locations in California, Illinois, and Texas from the transaction perimeter to concentrate resources on East Coast hubs while renegotiating commercial lease terms with New York property landlords. Meanwhile, Blink Fitness continues evaluating standalone divestiture proposals for its remaining gyms across California, Illinois, Massachusetts, and Texas ahead of a formal court approval hearing scheduled for November 6, 2024. Transaction legal counsel was provided to PureGym by George Davis of Latham & Watkins alongside Norman Pernick and David Dean of Cole Schotz. Blink Fitness and selling parent entity Equinox were represented by Michael Nestor, Sean Greecher, Allison Mielke, Timothy Powell, Rebecca Lamb, and Ben Carver of Young Conaway Stargatt & Taylor.
Blink Fitness, which reported an EBITDA margin of [members only] in 2024, is valued in this transaction at an EV/EBITDA multiple of 10x–18x.
-> Deep-dive in Retail & Consumer market trends
Target
Operating as a low-cost fitness chain, Blink Fitness provides accessible gym facilities centered on an all-inclusive and inviting workout atmosphere. The company operates a network of approximately 100 gyms across the United States, maintaining clubs across California, Illinois, Massachusetts, New Jersey, New York, and Texas. Under the corporate ownership of Equinox, the brand structured its commercial offering around tiered monthly membership rates ranging between $15 and $45 per customer. The operating framework focuses on providing fully equipped strength and cardiovascular workout spaces designed to accommodate broad consumer demographics seeking budget-conscious health services. In August 2024, the business initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware under case number 24-11686, having accumulated approximately $280 million in liabilities following mandatory operational shutdowns and deferred commercial leases.
Ent. Value
$100–350M
Equity Value
[members only]
Multiples
EV / Revenue
1x–3x
EV / EBITDA
10x–18x
EV / EBIT
[members only]
Historical Financials (USD)
Other operations with Puregym
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 12/2021 | KKR | PUREGYM | UNITED STATES | Hospitality |
| 01/2020 | PUREGYM | FITNESS WORLD GROUP | DENMARK | Hospitality |
| 11/2017 | LEONARD GREEN & PARTNERS | PUREGYM | UNITED STATES | Hospitality |
Similar deals in Hospitality & Leisure
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 01/2025 | FRENCH FOOD CAPITAL / CEREA PARTNERS / SOFIPROTEOL | BOULANGERIES SOPHIE LEBREUILLY | FRANCE | Restaurants / Chains |
| 11/2024 | PIPER / COOL JAPAN FUND | INSIDE TRAVEL GROUP | UNITED KINGDOM | Tour Operators |
| 10/2024 | EPIRIS | AMBER TAVERNS | UNITED KINGDOM | Restaurants / Chains |
| 10/2024 | HYATT | STANDARD INTERNATIONAL | UNITED STATES | Hotels & Accommodation |
| 09/2024 | L CATTERTON | SOLIDCORE | UNITED STATES | Leisure Facilities |
| 07/2024 | PIPER | MARTIN RANDALL TRAVEL | UNITED KINGDOM | Tour Operators |
| 03/2024 | COMPAGNIE DES ALPES | GROUPE URBAN | FRANCE | Leisure Facilities |
| 02/2024 | MCWIN CAPITAL PARTNERS | STICKS’N’SUSHI | DENMARK | Restaurants / Chains |
| 01/2024 | BASIC-FIT | RSG SPAIN | SPAIN | Leisure Facilities |
| 12/2023 | SHAMAL HOLDING | SUSHISAMBA GROUP | UNITED KINGDOM | Restaurants / Chains |
REFERENCES
Valuation range: EV $100–350M
Revenue range: $100–200M
EBITDA range: $5–25M
EV/Revenue range: 1x - 3x
EV/EBITDA range: 10x - 18x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Blink Fitness by Puregym are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: blink fitness
FAQ
What transaction does this page cover?
How was the acquisition of Blink Fitness by Puregym valued, and what multiples were paid?
What were Blink Fitness’s revenue and EBITDA at the time of the deal?
What sources support the information on this transaction?
What is mynth?