The upmarket chain said BGF’s capital will allow it to continue its site roll-out in London as well as expanding beyond the capital. Gymbox currently has five clubs across London with a sixth set to open in Old Street.
The BGF news coincides with the exit of previous investor Octopus Investments, which has been winding down its stake for the last year, after investing £1.3m in Gymbox in 2010, according to a source close to the deal.
BGF investment director Alistair Brew will join Gymbox’s board of directors as part of the deal.
He said, “We saw this as a fantastic opportunity to back an ambitious and proven management team in the roll-out of a successful and differentiated gym business which has had impressive success to date.
“The business has consistently hit its financial targets and we are delighted to be partnering at this stage of Gymbox’s exciting development.”
The exercise business is expected to turnover £10m, with an EBITDA of £3.5m in the year ending October 2014. It currently has 13,400 members.
Gymbox represents BGF’s second investment in the UK fitness market having backed low-cost gym group Xercise4Less in August 2013.
In May this year BGF announced it had re-invested £2m into the gym chain, while re-upping £3.6m to Mexican street food chain Barburrito.
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