Montefiore backs Les Cercles de la Forme

Greg Gille
10 October 2017

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French GP Montefiore Investment has invested in fitness clubs operator Les Cercles de la Forme.

The deal is understood to have closed over the summer, with Montefiore securing a minority stake by acquiring the shares previously held by CM-CIC Capital, as well a portion of the stake held by management.

In June 2013, CM-CIC Finance and state-funded Oseo provided funding for the gyms operator to the tune of €5m. CM-CIC Capital provided €3.5m and Oseo contributed €1.5m, according to unquote" data. The funding was earmarked to finance a number of targeted acquisitions.

Since then, Les Cercles de la Forme has acquired a number of locations, including those formerly managed by competitor Vit'Halles. With fresh backing from Montefiore, the fitness clubs operator will aim to continue consolidating the sector in Paris, and has since the deal already bought seven sites previously operated by Fitness Price.

Montefiore closed its latest fund, Montefiore Investment IV, on its €420m hard-cap in July last year. The fund targets French SMEs in the private and B2B services sector as well as those providing health or education services. Target companies typically have a turnover within the €20-200m range and an EBITDA ranging between €3-30m. The fund invests equity tickets starting from €10m and up to €50m.

Company
Paris-based Les Cercles de la Forme operates a number of fitness clubs, positioning itself in the mid-range segment. Its fees can be tailored to the frequency of usage to eventually offer lower costs than mainstream offerings. It also offers a number of classes in order to differentiate from more basic low-cost gym operators.

People
Montefiore Investment – Eric Bismuth (chair); Frédéric Wargnies (director).

Advisers
Equity – Exelmans Audit & Conseil (financial due diligence); Advancy (commercial due diligence); Mayer Brown (legal).
Vendors – Pax Corporate Finance (corporate finance); Victor Avocats (legal); Rozant & Cohen (tax); Crowe Horwath HAF (financial due diligence).