Windfall for club founder after sale of Soho Gyms

THE man behind celebrity haunt the Embassy nightclub is among a trio of shareholders set for a multimillionpound windfall from the sale of Soho Gyms.

Puregym, the nation’s largest chain by membership, is acquiring Soho Gyms for an undisclosed amount.

Nightclub founder and Soho Gyms chairman Jeremy Norman, managing director Michael Crockett and cofounder Richard Taylor are set for a bumper payday.

Soho generated earnings before depreciation, amortisation, interest and tax of almost £1.5m in its most recent financial year, according to filings at Companies House.

With 10 central London sites to be handed over, analysts said it was likely Puregym’s valuation would have been more than the six times earnings multiple that listed rival the Gym Group paid for easygym last week. This suggests Soho’s three shareholders could be celebrating a windfall in excess of £10m.

Mr Norman is credited with launching London’s first New York-style nightclub in Old Bond Street in 1978.

Established in 1994, Soho Gyms claims to have a “reputation for contemporary urban style”.

Puregym was founded in 2009, one of a number of low-cost clubs launched at the time. It was sold for £600m to private equity firm Leonard Green & Partners in November 2017.

Mr Crockett said: “This transaction will give users of Soho Gyms access to the largest network of gyms in the UK. I’m confident that our members will benefit from the combination and that Puregym’s investment across the estate will further enhance the services our sites deliver.”

Puregym chief executive Humphrey Cobbold said: “This deal will clearly benefit our existing members as well as provide more affordable and flexible options to people across London.”