LA firm LGP buys Leeds’ Pure Gym in £600m deal

Los Angeles-based private equity firm Leonard Green & Partners (LGP) said it will buy a controlling interest in Leeds-based Pure Gym Ltd, the UK’s largest gym operator.

The deal is thought to value Pure Gym at around £600 million.

“LGP will replace current majority shareholder, funds affiliated with CCMP Capital Advisors, LP (CCMP), who bought a majority stake in the business in May 2013 and will no longer retain an interest in the business on completion,” said LGP.

“The transaction is timetabled to complete at the end of November. Terms of the transaction were not disclosed.”

LPG said Pure Gym is the UK’s leading gym operator providing low-cost fitness facilities for more than 950,000 members spread across 189 sites.

Pure Gym CEO Humphrey Cobbold 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 in their 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 years and we thank them for their support.

“The management team and I look forward to working with LGP to continue 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.

“We have been incredibly impressed by the business that Humphrey and the team at Pure Gym have built over the last few years and believe that the business has tremendous potential for the future.”

Tom Walker, Managing Director of CCMP (UK), said: “CCMP’s partnership with Pure Gym has taken it from a company in its infancy to the UK’s leading and largest gym group.

“It’s been a pleasure to work with Humphrey and his team, and we wish them great success under the new partnership with LGP.”

Pure Gym was advised jointly by investment banks Jefferies International Limited and Harris Williams & Co and received legal advice from Ropes & Gray.