US private equity firm Leonard Green and Partners is set to take a controlling share in Pure Gym from CCMP Capitol advisors.
Pure Gym, which launched in 2009, is the UK’s leading gym operator with more than 950,000 members across 189 sites.
CCMP bought a majority stake in the business in May 2013 and will no longer retain an interest in the business on completion, which is expected to be at the end of November.
Terms of the transaction have not been disclosed but it is expected that it will be valued at £600million.
Last year Pure Gym aborted plans to float on the London Stock Exchange citing ongoing market volatility.
Humphrey Cobbold, chief executive of Pure Gym, said: “We are absolutely delighted to be entering into a new partnership with Leonard Green & Partners, whose investment confirms the growth potential of our business.They have some big brands int heir portfolio and an excellent track record of investing in the leisure and fitness industry. CCMP have been an incredibly supportive partner and played a vital role in Pure Gym’s development over the last four yearsand we thank them for their support. The management team and I look forward to working with LGP to continue our momentum and to keep our momentum and to keep offering affordable, flexible and high-quality gyms to our members across the UK.”
Kris Galashan, partner at LGP, said: “Over the years we have made numerous investments in the gym and fitness arena and we are very excited to be extending our involvement in the industry through this investment in Pure Gym.”