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Les Mills
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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

Exclusive: DW Fitness buys 7 former LA fitness sites from Pure Gym

DW Fitness has bought seven former LA fitness sites from Pure Gym, Health Club Managment can exclusively reveal.

Pure Gym acquired the 42-site LA fitness portfolio in May for a sum thought to be in the region of £60-80m. The takeover received the green light from the Competition and Markets Authority (CMA) in August and Pure Gym has since been working to convert the majority of LA fitness locations into low cost health clubs.

However, Pure Gym decided to offload seven health clubs which either overlapped with its existing sites or were better-suited to a mid-market model and this has given the gym chain owned by Dave Whelan the opportunity to acquire a diverse set of locations. In addition to two health clubs in DW Fitness’ northern heartland (Brooklands and Yeadon), it has also taken control of Belfast Shawsbridge, Brentwood, Ewell (Surrey) and the plush gym in Covent Garden’s Waldorf Hilton Hotel. The exchange of a seventh club in Thorpe Bay, Essex, is expected to be completed later today (4 November).

Pure Gym chief financial officer Adam Bellamy, who has been overseeing the conversion of the LA fitness portfolio, told Health Club Management that multiple parties expressed interest in acquiring any surplus sites, but said there was clear synergy between its aims and those of DW Fitness.

“With any large deal there are always a few locations which don’t fit with the existing portfolio, so when we bought LA fitness we identified a few sites where we already had representation and others which we felt would be best served by a mid-market proposition,” said Bellamy.

“DW Fitness are buying seven LA fitness sites from us, but we have no plans to sell any more at this stage. We’re focusing on the £20-30m conversion of the LA fitness portfolio and these clubs will all look pretty much brand new by the time we’ve finished the project in May 2016.”

Financial details of the deal have not been disclosed and it is understood that there are no immediate plans for DW Fitness to radically change the former LA fitness club. A letter from LA fitness CEO Martin Long to members of the LA fitness Waldorf club, seen by Health Club Management, said: “Whilst there is a change of ownership for your club, there will be no changes to the current terms of your membership agreement or the services the club offers. To facilitate a smooth transition, the existing staff will continue to be employed in the club by DW Fitness.”

The acquisition provides a welcome step forward for DW Fitness – which last year lost several members of its top team to Mike Ashley’s gym venture Sports Direct Fitness – taking its UK gym portfolio to 78 sites.

DW Sports Fitness chair Dave Whelan said the brand is particularly pleased to have secured gym facilities in the south of England.

“We’re always being asked if we have plans to set up gym facilities in the south, so we know there’s huge demand for our high-quality facilities in this part of the country,” he commented.

“We’re delighted to be expanding our reach even further, and we’re sure that existing members of the seven gyms in question will be extremely happy with our offering. Of course, we’ll be keeping members right up to date on any forthcoming changes.”

DW Fitness has bought seven former LA fitness sites from Pure Gym, Health Club Managment can exclusively reveal.
HAF,FIT,IND
847738_922173.jpg
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News

Exclusive: DW Fitness buys 7 former LA fitness sites from Pure Gym

DW Fitness has bought seven former LA fitness sites from Pure Gym, Health Club Managment can exclusively reveal.

Pure Gym acquired the 42-site LA fitness portfolio in May for a sum thought to be in the region of £60-80m. The takeover received the green light from the Competition and Markets Authority (CMA) in August and Pure Gym has since been working to convert the majority of LA fitness locations into low cost health clubs.

However, Pure Gym decided to offload seven health clubs which either overlapped with its existing sites or were better-suited to a mid-market model and this has given the gym chain owned by Dave Whelan the opportunity to acquire a diverse set of locations. In addition to two health clubs in DW Fitness’ northern heartland (Brooklands and Yeadon), it has also taken control of Belfast Shawsbridge, Brentwood, Ewell (Surrey) and the plush gym in Covent Garden’s Waldorf Hilton Hotel. The exchange of a seventh club in Thorpe Bay, Essex, is expected to be completed later today (4 November).

Pure Gym chief financial officer Adam Bellamy, who has been overseeing the conversion of the LA fitness portfolio, told Health Club Management that multiple parties expressed interest in acquiring any surplus sites, but said there was clear synergy between its aims and those of DW Fitness.

“With any large deal there are always a few locations which don’t fit with the existing portfolio, so when we bought LA fitness we identified a few sites where we already had representation and others which we felt would be best served by a mid-market proposition,” said Bellamy.

“DW Fitness are buying seven LA fitness sites from us, but we have no plans to sell any more at this stage. We’re focusing on the £20-30m conversion of the LA fitness portfolio and these clubs will all look pretty much brand new by the time we’ve finished the project in May 2016.”

Financial details of the deal have not been disclosed and it is understood that there are no immediate plans for DW Fitness to radically change the former LA fitness club. A letter from LA fitness CEO Martin Long to members of the LA fitness Waldorf club, seen by Health Club Management, said: “Whilst there is a change of ownership for your club, there will be no changes to the current terms of your membership agreement or the services the club offers. To facilitate a smooth transition, the existing staff will continue to be employed in the club by DW Fitness.”

The acquisition provides a welcome step forward for DW Fitness – which last year lost several members of its top team to Mike Ashley’s gym venture Sports Direct Fitness – taking its UK gym portfolio to 78 sites.

DW Sports Fitness chair Dave Whelan said the brand is particularly pleased to have secured gym facilities in the south of England.

“We’re always being asked if we have plans to set up gym facilities in the south, so we know there’s huge demand for our high-quality facilities in this part of the country,” he commented.

“We’re delighted to be expanding our reach even further, and we’re sure that existing members of the seven gyms in question will be extremely happy with our offering. Of course, we’ll be keeping members right up to date on any forthcoming changes.”

DW Fitness has bought seven former LA fitness sites from Pure Gym, Health Club Managment can exclusively reveal.
HAF,FIT,IND
847738_922173.jpg

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