PureGym Raises $400M to Fund Expansion

PureGym secured a £300M (~$400M) investment from private equity firm KKR.

The deal values PureGym north of $2B, with KKR holding a significant minority stake.

Bulking Up

Founded in 2009, PureGym is the UK’s largest gym business, earning £111M in revenue for the quarter ending September 30.

In 2020, the low-cost operator acquired Denmark’s Fitness World chain for £350M. With its additions, PureGym counts 1.6M members across 511 clubs across the UK and Europe.

After considering a public offering, KKR’s backing will allow PureGym to continue expansion efforts, including locations in Saudi Arabia, Asia, and the US.

Fitness in Flux

Pandemic-related lockdowns crushed brick-and-mortar fitness, sending the $96B global industry into a tailspin.

The reopening rollercoaster created additional uncertainty for in-person exercise. All the while, home fitness brands thrived. But now, the tables are starting to turn.

• In recent months, digital and connected fitness companies, including Peloton, MIRROR, and Beachbody saw demand shrink.
• At the same time, gyms and studios like Planet Fitness, Xponential Fitness, and Crunch are returning to pre-pandemic growth.

In the US and abroad, gyms are finding their footing. Adding to PureGym’s capital raise, Life Time recently went public. Brazilian gym chain SmartFit completed its public offering. And shares of UK-based Gym Group are up this year as memberships rebound.

Back from the Dead

Despite the Gympocalyse narrative, gyms and studios are plotting a comeback. As we detailed in Issue No. 150, when it comes to workouts, consumers want optionality. Far from an either-or option between in-person or at home, the future of fitness is likely an all-of-the-above proposition.