LFPI acquires CMG Sports Club from 21 Partners

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).

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• 21 Centrale Partners
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