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Leonard Green & Partners pumping up Pure Gym
Posted on Friday, 11 September 2020 13:07
Private equity firm Leonard Green & Partners has agreed to inject GBP 100.00 million into UK-headquartered health and fitness centres operator PureGym.
The company said the investor, which already holds a stake in the business, is ploughing the cash sum into the group in order to shore up its balance sheet after it was forced to close its entire network of gyms earlier this year in the wake of the global coronavirus pandemic.
PureGym has since been able to reopen all of its locations, a move which it said has been met with positive feedback from its members and encouraging trends in term of client volumes and overall visits.
Proceeds will also be used to enable the group to return to its growth strategy based on the development and opening of new sites, while they will also provide a cash buffer in the event of local or national lockdown measures being reintroduced if a spike in cases occurs.
In addition, PureGym said it has agreed to increase commitments under its revolving credit facility by GBP 50.00 million, growing the total borrowings available from GBP 95.00 million to GBP 145.00 million.
The company describes itself as a leading European gym operator, with around 500 sites across the UK, Denmark, Switzerland and Poland.
Its user base numbers 1.70 million.
Upon its launch in 2009, PureGym’s main selling points was its flexible membership model, which sees clients pay monthly and without a contractual commitment, a practice which has since been more widely adopted throughout the fitness industry.
The firm has completed an investment of its own this year; in January, it acquired Danish peer Fitness World for GBP 350.00 million.
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