The Daily Telegraph

Gym chain sale brings windfall for backer Sir Chris Hoy

- By Rhiannon Bury

A US private equity firm that owns a stake in Topshop is to buy Pure Gym for a reported £600m, a year after the company abandoned plans to float.

Leonard Green & Partners has agreed to purchase a controllin­g interest in Pure Gym, the UK’S largest gym operator, taking over from its current private equity owner, CCMP Capital Advisors.

Although terms of the deal were not disclosed, it is expected to value the firm at about £600m.

Under CCMP’S tenure the company has expanded to operate 189 sites across the country, and is nearing its millionth member. It was launched back in 2009, with CCMP coming on board four years later.

Last year, Pure Gym had to abort a planned float on the London Stock Exchange after citing ongoing market volatility. The company had previously tried to merge with rival the Gym Group, but was forced to abandon the plan after the competitio­n watchdog warned that it could lead to higher prices for consumers.

Los Angeles-based Leonard Green & Partners bought a stake in Topshop from Sir Philip Green’s Arcadia group in 2012, allowing Sir Philip to pay off some of the firm’s bank debt.

Kris Galashan, a partner at the firm, 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.”

The sale of Pure Gym will also result in a windfall for celebrated British cyclist Sir Chris Hoy, who is a small shareholde­r in the business.

Humphrey Cobbold, chief executive of Pure Gym, said that Leonard Green’s investment confirmed “the growth potential of our business”. The firm is expected to continue with its strategy of opening 20 to 25 gyms a year.

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