Oaktree Capital Management takes majority stake in Fitness First

UNITED KINGDOM Hospitality & Leisure / Hospitality REV £450–900M

Context

The deal involves Oaktree Capital acquiring a majority stake in Fitness First through a debt-for-equity swap. The transaction is expected to provide a rescue package for the debt-laden gym chain, which has been struggling to meet its interest payments. The deal will allow BC Partners, the current private equity backer of Fitness First, to retain a partial stake in the company, potentially limiting its losses. The debt-for-equity swap is an unusual structure, as it is not a hostile takeover, but rather a collaborative effort between Oaktree Capital and BC Partners to restructure Fitness First's debt and provide a stable financial foundation for the company. The deal is expected to be completed in a matter of weeks, with Oaktree Capital taking control of the company. The transaction is seen as a strategic move by Oaktree Capital to acquire a majority stake in a prominent gym chain operator, with potential for future growth and expansion. The deal is also expected to provide a significant opportunity for Oaktree Capital to create value through active management and strategic restructuring.

In the past, Fitness First was acquired by BC Partners in 2005 as part of its expansion strategy.

Fitness First, which reported an EBITDA margin of [members only] in 2011, is valued in this transaction at an EV/EBITDA multiple of [members only].

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Target

Fitness First is a prominent gym chain operator with a significant presence in the health and wellness sector. The company has a long history of providing fitness services to its members, with a network of approximately 430 clubs. Fitness First offers a range of amenities and services, including state-of-the-art equipment, group fitness classes, and personal training sessions. The company has faced challenges in recent years due to increased competition from budget gym operators and declining consumer spending. Despite these challenges, Fitness First remains a well-established brand with a strong reputation in the fitness industry. The company's business model is focused on providing a high-quality fitness experience to its members, with a emphasis on convenience, flexibility, and value. Fitness First has a diverse range of membership options and pricing plans, allowing it to cater to a broad range of customers. The company's operations are supported by a team of experienced professionals, including personal trainers, group fitness instructors, and customer service staff.

Ent. Value

[members only]

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (GBP)

Year

Rev

EBITDA

EBIT

2011

2010

Other operations with Fitness First

Other operations with Fitness First
Date	Acquirer	Target	Country	Sector
09/2005	BC PARTNERS	FITNESS FIRST	UNITED KINGDOM	Hospitality

Other operations with Oaktree Capital Management

Other operations with Oaktree Capital Management
Date	Acquirer	Target	Country	Sector
01/2021	OAKTREE CAPITAL MANAGEMENT	COL GROUP	ITALY	Electrical Equipment
12/2019	OAKTREE CAPITAL MANAGEMENT	FORTIDIA	ITALY	Warehousing / 3PL
01/2010	OAKTREE CAPITAL MANAGEMENT	VERESCENCE	FRANCE	Glass Packaging

Similar deals in Hospitality & Leisure

Similar deals in Hospitality & Leisure
Date	Acquirer	Target	Country	Sector
06/2013	CREDIT MUTUEL EQUITY	COURTEPAILLE	FRANCE	Restaurants / Chains
04/2013	ALSEA	BURGER KING IN MEXICO	MEXICO	Restaurants / Chains
09/2011	NAXICAP PARTNERS	SUSHI SHOP GROUP	FRANCE	Restaurants / Chains
01/2011	HIG CAPITAL	LOOPING GROUP	FRANCE	Leisure Facilities
01/2011	CHANGE CAPITAL PARTNERS	ROSSOPOMODORO	ITALY	Restaurants / Chains
12/2010	FONDATIONS CAPITAL	COURTEPAILLE	FRANCE	Restaurants / Chains
06/2007	LIGHTSTONE GROUP	EXTENDED STAY AMERICA	UNITED STATES	Hotels & Accommodation
03/2007	MERLIN ENTERTAINMENTS	THE TUSSAUDS GROUP	UNITED KINGDOM	Leisure Facilities
02/2006	MONTEFIORE INVESTMENT	HOMAIR VACANCES	FRANCE	Hotels & Accommodation
09/2005	BC PARTNERS	FITNESS FIRST	UNITED KINGDOM	Hospitality

REFERENCES

Revenue range: REV £450–900M

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Fitness First by Oaktree Capital Management 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: fitness first

FAQ

What transaction does this page cover?

This page covers the acquisition of a majority stake in Fitness First, a British company specialised in Hospitality, by Oaktree Capital Management in 2012. This followed an earlier holding cycle initiated in September 2005, when the company was acquired by BC Partners.

What was Fitness First’s revenue at the time of the deal?

At the time of the transaction, Fitness First’s annual revenue was estimated within the £450–900M range (FY 2011). Detailed financial figures are available to members.

What sources support the information on this transaction?

Transaction data and operational intelligence were compiled from independent financial press reporting by specialized M&A publications.

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