Magenta Partners has led a £6m investment round for budget health club company Pure Gym Limited. This is the company’s first round of institutional funding, having previously raised £3.5m from management and individual investors in 2009.
Pure Gym provides high quality gym facilities at affordable prices and without the need for annual membership contracts. Members pay c.£15.99 per month for 24/7 access to the club facilities which include c.200 pieces of state of the art equipment.
Similar models have been rolled out in the US and continental Europe with great success and the UK remains one of Europe’s largest and most expensive gym markets.
Pure Gym currently has 4 sites (Leeds, Manchester, Edinburgh and Wolverhampton), with a fifth (Sheffield) due to open shortly, and is looking to expand to 20 sites by 2011.
Peter Roberts, CEO of Pure Gym, and his team have extensive leisure experience having founded and/or managed several successful roll-outs including The Langdale Group, Luminar Leisure, Golden Tulip Hotels and Tulip Inns.
Magenta Partners brings significant experience of investing in Health Clubs in the UK, with Chase Emson who was closely involved with MidOcean’s investment in LA Fitness from 2005 to 2008 and Tom Matthews who was a member of the original Bridges Ventures deal team on The Gym.
Tom Matthews of Magenta Partners commented:
“We are extremely excited by this investment. Low cost gyms represent the next phase of growth in the maturing UK health and fitness market. The low cost model presents better value for money for existing gym participants but, as importantly, attracts new, more price sensitive customers to the market. The four sites to date have been supportive of the customer offering and underlying business model, and we are looking forward to working with a very experienced management team in order to continue the rapid growth of the business.”
Peter Roberts, CEO of Pure Gym added:
“We continue to be hugely excited by the opportunities that exist for Pure Gym in its expansion and I am delighted that Magenta, as experienced investors in the sector, are working with us and the Board to deliver our full potential.”
For more information please visit www.puregym.co.uk