LFPI acquires CMG Sports Club from 21 Partners

Alice Tchernookova
26 May 2016

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LFPI has acquired a majority stake in fitness club chain CMG Sports Club, formerly Club Med Gym, after eight years spent under 21 Centrale Partners' ownership.

According to information published by French outlet Capital Finance and backed by a source close to the deal, LFPI won the auction managed by Natixis Partners, beating rival bids by Perceva Capital and market competitors Lagardère and Neoness, and by ex-parent Club Méditerranée, which still retained 10% of CMG prior to this deal.

LFPI is planning to inject €20-30m in order to keep the business afloat and competitive, as it previously suffered from the appearance of rival low-cost fitness club chains on the French market. Between 2008-2015, the company's turnover consequently stagnated around €50m.

21 Partners had taken an 80% stake in CMG in 2008 in a deal valued at €74m, joined by SEC Partners. The club was then known as Club Med Gym and was a Club Méditerranée subsidiary.

With LFPI's support, CMG will look to modernise part of its 23 existing clubs, and to open new ones in the Ile-de-France region. It might also expand its activity to provincial cities in the future.

LFPI and 21 Partners both declined to comment at this stage.

Company
CMG is a French fitness club chain founded in the early 1980s and based in Paris. Having started off as a Club Meditérranée subsidiary named Club Med Gym, it was later on rebranded as CMG Sports Club.

The group currently has 23 clubs under management, all located in the Ile-de-France region. In 2011, unquote" reported that it operated 22 clubs in Paris, 32 corporate clubs in large companies and luxury hotels, and had approximately 70,000 members.

Advisers
Equity – Orrick Rambaud Martel, Saam Golshani, Alicia Bali, Alexis Hojabr, Gaspard le Pomellec (legal); Pax Corporate Finance, Adrien Tourres (corporate finance).
Vendor – Natixis Partners, Jean-Baptiste Marchand, Benjamin Giner (M&A); Desfilis & McGowan, Philippe Rosenpick, Nathalie Hollier-Cheynet, Sophie Fournier (legal); PLMC Avocats, Patricia Le Marchand (legal); Roland Berger Strategy Consultants, Olivier de Panafieu (commercial due diligence).