GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
Elevate
Elevate
Elevate
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

Pure Gym signals global ambitions with £300m cash injection from KKR

KKR has pumped £300m into Pure Gym via an equity deal to drive global expansion
Existing investor, Leonard Green and Partners is still on board
The deal with give Pure Gym access to £500m of capital
CEO, Humphrey Cobbold, says Pure Gym has ambitions to be a global brand
Our strategy is to become a leading player in the world market for gyms, fitness and activity
– Humphrey Cobbold, CEO, Pure Gym

Pure Gym has dropped plans for an IPO which it revealed in August, opting instead to raise £300m through an equity deal with investment firm, KKR (www.kkr.com).

In addition to reducing the company's debt levels, the funds will support PureGym’s growth plans, which include aspirations to scale globally via organic growth and franchising, as reported by HCM in August.

Pure Gym says KKR will become a 'significant minority investor' in the business, with current backers, Leonard Green and Partners, retaining a 'majority ownership position'. The two firms already have a number of shared investments.

When combined with existing resources and credit lines, Pure Gym will have access to approaching £500m of capital after completion of the deal.

These funds will be used to drive growth through the opening of more sites in Pure Gym's current markets – Denmark, Switzerland and the UK – while supporting entry into new markets such as the US, where three trial gyms are about to launch.

The company is also developing its international franchise product, with a deal already in place for Saudi Arabia and says it's in early-stage discussions with potential franchise partners in Asia, as well as having plans to develop its consumer-facing digital fitness products.

In addition, Pure Gym will invest in its award-winning tech platforms: "Pure Gym has always applied technology innovatively and intends to remain at the vanguard of the world’s technology-enabled gym and fitness operators," says CEO, Humphrey Cobbold.

"To have investors of the calibre of KKR and LGP supporting our business is a testament to the extraordinary efforts of every single colleague across our enterprise," he continued. "It's also an endorsement of our overall strategy, which is to become one of the leading players in the rapidly developing world market for gyms, fitness and activity.

"At PureGym we're driven by a clear mission and purpose of inspiring a healthier world by making activity affordable and accessible to millions of people," said Cobbold. "We have a clear and deliverable growth strategy to ensure we succeed in this mission.

"With health and wellbeing rising to the top of the global agenda we now have the capital, the capabilities, the technology and the management team to become a global fitness and activity operator,” he said.

With these ambitions and a warchest, Pure Gym will also be on the lookout for suitable M&A opportunities and – given the volatile state of the market in some parts of the world – we can also expect to see growth by acquisition.

Pure Gym has been signalling its intention to ramp up expansion for some time. In June, Pure Gym MD, Rebecca Passmore, told HCM the bounceback was going better than expected and in November, the company reported that revenues for 2021 were ahead of the equivalent period in 2019, with profits recovering from the challenges of the pandemic.

The company had a tough time during lockdowns, losing £4m a week when gyms were closed and Cobbold has been a powerful advocate for the sector, appearing on national TV to argue the case for health clubs being an essential service.

Existing shareholders will see a dilution with this deal, but the cash injection will unlock growth to ramp up profits in the short to medium term with an IPO the likely eventual exit.

Ultimately, the subscription model – whereby companies can switch on a pipeline of payments on reopening – is turning out to be highly attractive to investors.

Blaine MacDougald, partner and co-head of KKR's Strategic Investments Group, remarked: “We've followed Pure Gym closely over the last few years as it emerged as an outstanding performer in its sector, with an experienced management team well positioned to take advantage of the global opportunity in health and wellbeing.

"This investment provides flexible capital to support its growth and international expansion and we'll draw on the full range of KKR’s global platform and operational resources to help them drive further success for the business.”

Kris Galashan, a partner at Leonard Green and Partners, said: "Today’s capital-raising represents a significant development in the company’s journey and we're delighted to be working alongside KKR – one of the world’s leading investment firms.”

In addition to Pure Gym, KKR (Kohlberg Kravis Roberts and Co LP) has invested in businesses including ERM, Citation, Viridor, John Laing, Trainline, Darktrace and wellness company, The Hut Group among others.

It has a strong global focus on consumer industries, with investments in Europe including Upfield, Roompot, Wella, Alliance Boots, SMCP.

Pure Gym says closing of the investment remains subject to the satisfaction of customary conditions.

Pure Gym has dropped plans for an IPO which it revealed in August, opting instead to raise £300m through an equity deal with investment firm, KKR.
PTS,HAF,FIT,IND,INV,PHR
2021/THUMB348923_586704_464130.jpg
Latest News
The Leisure Database Company (TLDB) has revealed its State of the Fitness Industry Report UK ...
Latest News
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during ...
Latest News
A new physical activity programme called Big Sister has been launched in the UK to ...
Latest News
Go Fit has been selected by the United Nations Economic Commission for Europe (UNECE) as ...
Latest News
Ness, a US startup that is developing a range of wellness-driven credit cards, has launched ...
Latest News
Following a history of supporting US military and service members, F45 has announced a new ...
Latest News
Hyatt is piloting private gyms in five of its US hotels as part of its ...
Latest News
A young girl has died following an incident at the David Lloyd gym at Capability ...
HCM Magazine
HCM People
We want to break America, get more funding and be the leaders in strength training
HCM Magazine
Everyone's talking about
In the wake of the pandemic, is the time ripe to change the language around the role of exercise professionals, and gain greater trust from the healthcare sector?
HCM Magazine
Supplier showcase
Pulse Fitness and Bolsover District Council have been collaborating for many years to deliver dedicated community activity spaces
HCM Magazine
Postbag
As HCM passed its 300th edition milestone, readers shared their thoughts and feelings on HCM’s contribution to the industry in a very special postbag
HCM Magazine
Annual report
In April, Deloitte and Europe Active published the ninth edition of their yearly European Health and Fitness Market Report, as Karsten Hollasch explains
HCM Magazine
Sponsored
Yate Leisure is one of the largest sites in Circadian Trust’s portfolio, with around 4,000 members. Ben Beasley, director of commercial development, explains why they were an early adopter of Technogym Biocircuit, and how the offer has evolved
HCM Magazine
Research
Bryce Hastings, head of research at Les Mills, explains the latest research into exercise motivation, giving tips on how to engage hard-to-reach members
HCM Magazine
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
What to do when your changing rooms need a refresh, but your budget is stretched? These specialists share their top tips for easy upgrades that won’t break the bank
HCM magazine
Being physically active can heal damage caused by diabetes, enabling the activation of a natural system that grows new blood vessels, according to research in the US
Featured supplier news
Featured supplier news: Virtuagym raises €3m investment to fuel innovation in health and fitness technology
Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured supplier news
Featured supplier news: Magicline celebrates UK market entry at Elevate
With a focus on globalisation, Magicline has officially launched its software in the UK. As Europe’s leading gym management software company, the company strives to provide the best tools for gym owners to be successful, win new members and elevate their businesses.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Featured operator news
Featured operator news: New partnership delivers swimming support to children with disabilities
A new partnership has been launched to provide inclusive swimming for children with mobility, visual and hearing disabilities.
Company profiles
Company profile: Virtuagym
Virtuagym is a global provider of health and fitness technology for coaching, engagement and management ...
Company profiles
Company profile: Everyone Active
Everyone Active operates leisure centres in partnership with local councils across the UK. Today, Everyone ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Wearable technology solutions
MyZone: Wearable technology solutions
Salt therapy products
Saltability: Salt therapy products
trade associations
International SPA Association - iSPA: trade associations
Management software
Premier Software Solutions: Management software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Skincare
Comfort Zone - Davines S.p.A: Skincare
On demand
Fitness On Demand: On demand
Architects/designers
Zynk Design Consultants: Architects/designers
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates

News

Pure Gym signals global ambitions with £300m cash injection from KKR

KKR has pumped £300m into Pure Gym via an equity deal to drive global expansion
Existing investor, Leonard Green and Partners is still on board
The deal with give Pure Gym access to £500m of capital
CEO, Humphrey Cobbold, says Pure Gym has ambitions to be a global brand
Our strategy is to become a leading player in the world market for gyms, fitness and activity
– Humphrey Cobbold, CEO, Pure Gym

Pure Gym has dropped plans for an IPO which it revealed in August, opting instead to raise £300m through an equity deal with investment firm, KKR (www.kkr.com).

In addition to reducing the company's debt levels, the funds will support PureGym’s growth plans, which include aspirations to scale globally via organic growth and franchising, as reported by HCM in August.

Pure Gym says KKR will become a 'significant minority investor' in the business, with current backers, Leonard Green and Partners, retaining a 'majority ownership position'. The two firms already have a number of shared investments.

When combined with existing resources and credit lines, Pure Gym will have access to approaching £500m of capital after completion of the deal.

These funds will be used to drive growth through the opening of more sites in Pure Gym's current markets – Denmark, Switzerland and the UK – while supporting entry into new markets such as the US, where three trial gyms are about to launch.

The company is also developing its international franchise product, with a deal already in place for Saudi Arabia and says it's in early-stage discussions with potential franchise partners in Asia, as well as having plans to develop its consumer-facing digital fitness products.

In addition, Pure Gym will invest in its award-winning tech platforms: "Pure Gym has always applied technology innovatively and intends to remain at the vanguard of the world’s technology-enabled gym and fitness operators," says CEO, Humphrey Cobbold.

"To have investors of the calibre of KKR and LGP supporting our business is a testament to the extraordinary efforts of every single colleague across our enterprise," he continued. "It's also an endorsement of our overall strategy, which is to become one of the leading players in the rapidly developing world market for gyms, fitness and activity.

"At PureGym we're driven by a clear mission and purpose of inspiring a healthier world by making activity affordable and accessible to millions of people," said Cobbold. "We have a clear and deliverable growth strategy to ensure we succeed in this mission.

"With health and wellbeing rising to the top of the global agenda we now have the capital, the capabilities, the technology and the management team to become a global fitness and activity operator,” he said.

With these ambitions and a warchest, Pure Gym will also be on the lookout for suitable M&A opportunities and – given the volatile state of the market in some parts of the world – we can also expect to see growth by acquisition.

Pure Gym has been signalling its intention to ramp up expansion for some time. In June, Pure Gym MD, Rebecca Passmore, told HCM the bounceback was going better than expected and in November, the company reported that revenues for 2021 were ahead of the equivalent period in 2019, with profits recovering from the challenges of the pandemic.

The company had a tough time during lockdowns, losing £4m a week when gyms were closed and Cobbold has been a powerful advocate for the sector, appearing on national TV to argue the case for health clubs being an essential service.

Existing shareholders will see a dilution with this deal, but the cash injection will unlock growth to ramp up profits in the short to medium term with an IPO the likely eventual exit.

Ultimately, the subscription model – whereby companies can switch on a pipeline of payments on reopening – is turning out to be highly attractive to investors.

Blaine MacDougald, partner and co-head of KKR's Strategic Investments Group, remarked: “We've followed Pure Gym closely over the last few years as it emerged as an outstanding performer in its sector, with an experienced management team well positioned to take advantage of the global opportunity in health and wellbeing.

"This investment provides flexible capital to support its growth and international expansion and we'll draw on the full range of KKR’s global platform and operational resources to help them drive further success for the business.”

Kris Galashan, a partner at Leonard Green and Partners, said: "Today’s capital-raising represents a significant development in the company’s journey and we're delighted to be working alongside KKR – one of the world’s leading investment firms.”

In addition to Pure Gym, KKR (Kohlberg Kravis Roberts and Co LP) has invested in businesses including ERM, Citation, Viridor, John Laing, Trainline, Darktrace and wellness company, The Hut Group among others.

It has a strong global focus on consumer industries, with investments in Europe including Upfield, Roompot, Wella, Alliance Boots, SMCP.

Pure Gym says closing of the investment remains subject to the satisfaction of customary conditions.

Pure Gym has dropped plans for an IPO which it revealed in August, opting instead to raise £300m through an equity deal with investment firm, KKR.
PTS,HAF,FIT,IND,INV,PHR
2021/THUMB348923_586704_464130.jpg

News

The Leisure Database Company (TLDB) has revealed its State of the Fitness Industry Report UK
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during
A new physical activity programme called Big Sister has been launched in the UK to
Go Fit has been selected by the United Nations Economic Commission for Europe (UNECE) as
Ness, a US startup that is developing a range of wellness-driven credit cards, has launched
Following a history of supporting US military and service members, F45 has announced a new
ukactive
ukactive
ACTIV, a gym chain in Riyadh, Saudi Arabia, which operates separate gyms for men and
Hyatt is piloting private gyms in five of its US hotels as part of its
A young girl has died following an incident at the David Lloyd gym at Capability
New fitness franchise, Circuit Society, has signed its first London location in Bayswater. The 3,000sq
Active Nottingham, part of Nottingham City Council, has released a children’s book called Can We
The new £42m Moorways Sports Village will open its doors to the public on Saturday
Fitness industry veteran Harm Tegelaars has returned to the fitness industry by joining the board
Fitness On Demand
Fitness On Demand
Questex’s iconic event Sibec Europe-UK – known as Europe’s leading hosted buyer event for the
Planet Fitness saw its Q1 2022 revenue increase by 66.9 per cent (to US$186.7m) on
Sport England and UK Active have signed a five-year partnership agreement which will see the
Planet Fitness is offering high-school students free access to any of its 2,200 locations in
How can organisations, including health club and leisure businesses, decarbonise, generate clean energy and harness
Being physically active can counter the damage of diabetes by enabling the activation of a
Altis, an artificial intelligence-based personal trainer solution, has secured more than US$3m worth of financing,
Innovatise UK Ltd
Innovatise UK Ltd
Health clubs across the UK are facing huge rises in business energy bills which are
Members of the United States Congress and Washington DC staff are competing against each other
1Rebel has acquired two Core Collective clubs as part of a pre-pack administration deal, along
Elevate
Elevate
1 - 20 of 12,212
HCM Magazine
HCM People
We want to break America, get more funding and be the leaders in strength training
HCM Magazine
Everyone's talking about
In the wake of the pandemic, is the time ripe to change the language around the role of exercise professionals, and gain greater trust from the healthcare sector?
HCM Magazine
Supplier showcase
Pulse Fitness and Bolsover District Council have been collaborating for many years to deliver dedicated community activity spaces
HCM Magazine
Postbag
As HCM passed its 300th edition milestone, readers shared their thoughts and feelings on HCM’s contribution to the industry in a very special postbag
HCM Magazine
Annual report
In April, Deloitte and Europe Active published the ninth edition of their yearly European Health and Fitness Market Report, as Karsten Hollasch explains
HCM Magazine
Sponsored
Yate Leisure is one of the largest sites in Circadian Trust’s portfolio, with around 4,000 members. Ben Beasley, director of commercial development, explains why they were an early adopter of Technogym Biocircuit, and how the offer has evolved
HCM Magazine
Research
Bryce Hastings, head of research at Les Mills, explains the latest research into exercise motivation, giving tips on how to engage hard-to-reach members
HCM Magazine
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
What to do when your changing rooms need a refresh, but your budget is stretched? These specialists share their top tips for easy upgrades that won’t break the bank
HCM magazine
Being physically active can heal damage caused by diabetes, enabling the activation of a natural system that grows new blood vessels, according to research in the US
HCM magazine
Social media influencers cause harm by raising unrealistic expectations of physical perfection, as Andrea Dearden explains
HCM magazine
I’ve never believed in the hybrid model. People want to be around people. That’s why clubs are so powerful, and that’s what we need to play on
HCM magazine
HCM People

Jon Wright

Founder and CEO, Feel Electric
We’ve set ourselves the initial goal of developing 100 Feel Electric sites, using a cluster model
HCM magazine
The Global Wellness Summit brought together public health and wellness experts in Boston recently. Jane Kitchen was there for HCM to see first-hand what this ‘New new era in health and wellness’ will look like for the sector
HCM magazine
Each health club has its own unique challenges, but the right tech solution can make all the difference. In the first of a two-part series, specialists share how they’ve solved specific issues
HCM magazine
HCM People

Gunnar Peterson

Chief of athletics, F45
Choose consistent over perfect. That’s the long game. It’s never too late to pivot to that mindset
HCM magazine
Featured supplier news
Featured supplier news: Virtuagym raises €3m investment to fuel innovation in health and fitness technology
Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured supplier news
Featured supplier news: Magicline celebrates UK market entry at Elevate
With a focus on globalisation, Magicline has officially launched its software in the UK. As Europe’s leading gym management software company, the company strives to provide the best tools for gym owners to be successful, win new members and elevate their businesses.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Featured operator news
Featured operator news: New partnership delivers swimming support to children with disabilities
A new partnership has been launched to provide inclusive swimming for children with mobility, visual and hearing disabilities.
Company profiles
Company profile: Virtuagym
Virtuagym is a global provider of health and fitness technology for coaching, engagement and management ...
Company profiles
Company profile: Everyone Active
Everyone Active operates leisure centres in partnership with local councils across the UK. Today, Everyone ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Wearable technology solutions
MyZone: Wearable technology solutions
Salt therapy products
Saltability: Salt therapy products
trade associations
International SPA Association - iSPA: trade associations
Management software
Premier Software Solutions: Management software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Skincare
Comfort Zone - Davines S.p.A: Skincare
On demand
Fitness On Demand: On demand
Architects/designers
Zynk Design Consultants: Architects/designers
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Elevate
Elevate
Partner sites