The Gym Group shares are up eight per cent after buying out Lifestyle Fitness sites
Shares in The Gym Group, the only listed gym company, rose 8.5 per cent this morning after the company announced the acquisition of 18 additional sites for £20.5m.
The acquisition from Lifestyle Fitness is set to double the number of new gyms opened by the group this year, adding to an existing 20 gyms in its rollout scheme.
The gyms are situated across the Midlands and the North. Eight will continue under the Lifestyle brand while 10 will be converted to The Gym brands immediately.
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“Lifestyle is an excellent and complementary fit with our existing estate,” said chief executive John Treharne.
“These are well invested gyms in strong locations with an established membership. The acquisition strengthens The Gym Group’s position in the Midlands and North in areas where we are currently underrepresented and accelerates our expansion plan.
“The addition of these gyms is anticipated to be significantly earnings enhancing by 2019.”
Investment in the gyms is expected to total about £5.3m. The revenue of the additional sites last year was £11.1m.
The Gym Group listed towards the end of 2015, with a valuation of £250m.
It has since expanded its portfolio to a total of 98 gyms. This addition puts that number at over 100, with more set to open before the end of the year.