Buyout majors circle British gym chains


gym fitness weight barbellBuyout majors including CCMP Capital are reportedly planning to snap up two of the UK’s fastest growing gym chains to merge then into a £300m business.

The firms are mulling bids for Pure Gym and The Gym Group, which are already backed by private equity firms, said Sky News.

Bain is also understood to be interested in acquiring stakes in the chains, while Lloyds’ investment unit LDC has dropped out of the process after making an initial bid that fell short of expectations.

Both Pure Gym and The Gym Group have previously said they were looking to raise funds, but denied that they were up for sale.

Last year Pure hired Canaccord Genuity Hawkpoint to advise on its fundraising options.

Meanwhile, The Gym Group – backed by Bridges Ventures – needs tens of millions of pounds to fund its expansion plans and has brought McQueen on board to help it raise the necessary funds, the report added.

It also said the two chains overlapped geographically, which could complicate any eventual deal, citing people close to the fundraising. The sources also said the asking price might be too high and the enlarged business would still lack scale.

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