US interest in UK market?

We’ve noticed recently that there has been an increased interest in the UK health & fitness market from US companies. It’s not the first time that our trans-Atlantic counterparts have dipped their toes in what should be a lucrative market but their big brands like Golds have had limited success in the past.

However, it was always mooted that the UK market wasn’t quite developed enough for the US offering but with the likes of franchise operators Anytime and Snap Fitness starting to get a foothold here and US firms investing in Pure Gym, does the US feel that the UK market is finally ripe for the picking? It’s fair to say that the UK public are far more educated in the benefits of exercise than 10 years ago and  that has been reflected by the increased uptake of gym memberships.

With major US premium Chain Equinox biting the bullet and testing the murky London water with a single club, maybe the speed at which they decide to follow up with subsequent openings will provide stronger evidence that we should prepare for some considerable US driven activity in the near future?

If nothing else, it’s surely a confidence booster for the sector that it’s attracting significant interest from overseas.

Pure Gym Buyout Confirmed

Low-cost gym operator Pure Gym have been acquired by UK affiliates of US private equity firm CCMP. Currently operating 45 sites across the UK, initial indications from their new owner suggest an aggressive expansion plan with up to 40 new openings over the next twelve months.

Financial details of the deal have not been disclosed.

Source: Leisure Opportunities

Gym Group & Pure Gym buyout??

Interesting news from Sky late last week that private equity firms are indicating some serious interest in two of the UKs leading low-cost gym chains. Whilst another merger is probably not ideal for the recruitment market reducing the choice of established Health & Fitness operators to work for, the news could be seen as a confidence booster for the sector with the potential deal attracting some high profile investors. http://news.sky.com/story/1073843/buyout-barons-limber-up-for-gym-chains-merger