Global law firm Eversheds has advised leading UK middle-market private equity firm Phoenix Equity Partners on a £50m investment to support next phase of growth in The Gym Group.
Phoenix Equity Partners has invested alongside Bridges Ventures to expand the Company further to take advantage of the outstanding opportunity to extend the Company’s leadership of the low-cost gym sector.
Phoenix Equity Partners have acquired a 55% equity stake in the company and Bridges will retain a 25% interest. As a result of the transaction The Gym Group will have access to over £50m of capital to fund its future development and develop still further its innovative and technology driven focus in the affordable gym sector. It is also the intention to accelerate the Gym’s rollout programme to around 20 to 30 new gyms each year.
The Gym Group pioneered the concept of 24/7 state of the art, low cost gyms in the UK with the initial gym opening in 2008. The estate, with capital and guidance from Bridges Ventures, has blossomed and the Gym Group now operates 36 “no frills” gyms nationwide.
Following the injection of capital, The Gym’s management team will stay in place, focused on continuing to drive the future growth of the business.
The Eversheds team was led by Private Equity Partner James Trevis assisted by Antony Walsh, Patrick Davis, Jonathan Cox- Brown , Theresa-Marie Stodell, Jamie Smith, Sam Bhachu and David Beswick.
James commented:
“This is a good investment which will help The Gym Group with its expansion plans as it continues to expand its foothold in the market.”
John Treharne, CEO of The Gym commented:
"We are delighted to have Phoenix Equity Partners in tandem with Bridges Ventures to help take The Gym Group through its next exciting stage of development, continuing its fast rollout programme and to develop still further its innovative and technology driven focus in the affordable gym sector.”
David Burns, a Partner at Phoenix, commented:
“John and the management at The Gym have created a very successful model in this fast-growing sector and we look forward to investing further capital to help them take the business to the next level. Eversheds experienced private equity team provided invaluable guidance and assistance throughout the transaction. They matched our enthusiasm for the opportunity and totally committed to the process to ensure the delivery of a successful deal.”
http://press.eversheds.com/Press-releases/Eversheds-exercises-investmen…
