12/2021Minority

KKR invests in Puregym

UNITED STATES Hospitality & Leisure / Hospitality REV £250–500M

Context

PureGym has secured a £300 million equity investment from KKR, marking a significant milestone in the group’s international expansion and digital development strategy. KKR joins the capital structure as a significant minority investor alongside the majority owner, Leonard Green & Partners (LGP), and the company’s management team. The investment is structured as Convertible Cumulative Preference Shares, which rank junior to the existing Senior Secured Notes and feature accruing, non-paid dividends. The strategic rationale for the deal centers on providing PureGym with a robust capital base to fund the opening of new sites in the UK and Switzerland, strengthen the existing network in Denmark, and accelerate international franchising efforts in the Middle East, Asia, and the United States. This transaction highlights the strong recovery of the fitness sector post-pandemic and the increasing institutional appetite for technology-led, low-cost health platforms.

The acquisition of Puregym is part of the growth strategy of KKR, which already has several external growth operations under its belt, notably Devoteam in 2020.

Puregym, which reported an EBITDA margin of [members only] in 2021, is valued in this transaction at an EV/EBITDA multiple of [members only].

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Target

PureGym is the UK’s leading low-cost gym operator, recognized for pioneering the 24/7, no-contract fitness model. The company operates a large-scale network of over 240 gyms, providing affordable health and wellness services to more than 1.2 million members. Its business model relies on heavy automation, technology-driven operations, and a streamlined cost structure that allows for competitive pricing while maintaining high EBITDA margins. PureGym focuses on high-traffic urban locations and utilizes data analytics to optimize site selection and member retention. The firm’s strategic roadmap emphasizes geographic diversification and the pursuit of "European Champion" status through large-scale M&A. By offering a flexible, tech-enabled user experience, PureGym has disrupted the traditional mid-market fitness segment, establishing itself as a dominant player in the UK's value-fitness sector.

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

2021

2020

Other operations with Puregym

Other operations with Puregym
Date	Acquirer	Target	Country	Sector
10/2024	PUREGYM	BLINK FITNESS	UNITED STATES	Leisure Facilities
01/2020	PUREGYM	FITNESS WORLD GROUP	DENMARK	Hospitality
11/2017	LEONARD GREEN & PARTNERS	PUREGYM	UNITED STATES	Hospitality

Other operations with KKR

Other operations with KKR
Date	Acquirer	Target	Country	Sector
09/2022	KKR	BARRACUDA NETWORKS	UNITED STATES	Cybersecurity Services
02/2022	KKR	REFRESCO	NETHERLANDS	Beverages
01/2022	KKR	ACCELL GROUP	NETHERLANDS	Cycling & Micromobility
11/2020	CINVEN / KKR / PROVIDENCE EQUITY PARTNERS	MASMOVIL	SPAIN	Operators
10/2020	KKR / TETHYS INVEST / ARDIAN / CNP ASSURANCES / MERIEUX EQUITY PARTNERS	ELSAN	FRANCE	Clinics / Hospitals
07/2020	KKR	DEVOTEAM	FRANCE	IT Services
03/2020	KKR	VIRIDOR	UNITED KINGDOM	Waste-to-Energy
12/2015	KKR	LGC GROUP	UNITED KINGDOM	TIC (Testing, Inspection, Certification)
04/2014	HG CAPITAL / KKR / CINVEN	VISMA GROUP	NORWAY	ERP, HR & Finance
09/2010	KKR	VISMA GROUP	NORWAY	ERP, HR & Finance

Similar deals in Hospitality & Leisure

Similar deals in Hospitality & Leisure
Date	Acquirer	Target	Country	Sector
05/2022	DEA CAPITAL	PIZZERÍAS CARLOS	SPAIN	Restaurants / Chains
03/2022	JACK IN THE BOX	DEL TACO HOLDINGS	UNITED STATES	Restaurants / Chains
11/2021	RESTAURANT BRANDS	FIREHOUSE SUBS	UNITED STATES	Restaurants / Chains
11/2021	SUN COMMUNITIES	PARK HOLIDAYS	UNITED KINGDOM	Hospitality
10/2021	PAI PARTNERS	EUROPEAN CAMPING GROUP (ECG)	FRANCE	Hotels & Accommodation
10/2021	ACCOR HOTELS	SBE ENTERTAINMENT GROUP	UNITED STATES	Hotels & Accommodation
09/2021	BAIN CAPITAL	GAIL’S (BREAD HOLDINGS)	UNITED KINGDOM	Restaurants / Chains
08/2021	HYATT	APPLE LEISURE GROUP	UNITED STATES	Hotels & Accommodation
07/2021	FAT BRANDS	GLOBAL FRANCHISE GROUP	UNITED STATES	Restaurants / Chains
04/2021	INFRAVIA CAPITAL	SANDAYA	FRANCE	Hotels & Accommodation

REFERENCES

Revenue range: REV £250–500M

EBITDA range: £25–50M

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Puregym by KKR 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.

Press release: view release

Target: puregym

FAQ

What transaction does this page cover?

This page covers the acquisition of a minority stake in Puregym, an American company specialised in Hospitality, by KKR in 2021. This followed an earlier holding cycle initiated in November 2017, when the company was acquired by Leonard Green & Partners.

What were Puregym’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Puregym generated annual revenue estimated in the £250–500M range and EBITDA in the £25–50M bracket (FY 2021). Detailed financial figures are available to members.

What sources support the information on this transaction?

Data on this transaction was compiled from the official corporate announcement published by the parties, combined with independent reporting from specialized financial and M&A publications.

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