FITNESS WORLD GROUP acquired by PUREGYM
Context
PureGym has signed a definitive agreement to acquire 100% of Fitness World Group. The deal is financed through a committed bridging instrument, supported by a £35 million upsize to PureGym’s Revolving Credit Facility (RCF), with plans to replace the bridge with EUR senior secured debt in early 2020. Strategically, the merger is transformational, creating a pan-European operator of massive scale with nearly 500 gyms and 1.7 million members across four countries (UK, Denmark, Poland, and Switzerland). The rationale centers on territory diversification, procurement synergies, and the exchange of best practices in digital engagement and low-cost operations. Pro forma, the combined entity will generate revenue exceeding £400 million and a run-rate Adjusted EBITDA approaching £150 million. This acquisition positions PureGym as a consolidated European champion, capable of leveraging its combined scale to dominate the high-growth low-cost fitness segment across a total population base of 120 million people.
FITNESS WORLD GROUP, which reported an EBITDA margin of in 2019, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Retail & Consumer sector (11.0x).
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Target
Fitness World Group is a leading European value-gym operator and the undisputed market leader in Denmark. Headquartered in Denmark, the company operates a diversified portfolio of 240 fitness centers serving approximately 600,000 members across three key markets: Denmark, Switzerland, and Poland. The group’s business model is centered on a high-volume, low-cost approach, supplemented by a strong digital ecosystem and an in-house sports nutrition brand. In Denmark, the company maintains a dominant 45% market share with 185 sites. Its international footprint includes a significant presence in Switzerland (40 sites), established through the acquisition of Basefit.ch, and a growing organic and M&A-led operation in Poland (15 sites). Revenue is primarily driven by membership subscriptions (83%), with additional high-margin ancillary streams from personal training services and retail sales of fitness goods. Fitness World’s value proposition focuses on providing high-quality fitness infrastructure at accessible price points, supported by a robust mobile app that enhances member engagement. As a regional champion, the group leverages its scale to optimize procurement and operational efficiencies, positioning itself as a core platform for consolidation within the fragmented European fitness landscape.
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REFERENCES
Valuation range: EV 300M - 700M GBP
Revenue range: 100M - 200M GBP
EBITDA range: 25M - 50M GBP
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Press release: view release
Acquirer: puregym