FSN acquires Fitness World

The GP will invest via its FSN Capital IV fund, which closed on SEK 5.25bn at the end of 2013. The vehicle targets Nordic companies with enterprise values of between SEK 400m-2bn. In addition to the Danish market, which is viewed as being particularly developed for fitness businesses, FSN will look to extend the company's reach in Poland.

Fitness World's founders and management will retain a significant stake in the business, according to the GP.

Danske Bank provided a debt package to finance the acquisition, which is subject to approval from the relevant competition authorities.

The deal would see the current private equity appetite for health and fitness clubs reach the Nordic region. In the UK, Terra Firma was recently reported to be considering a bid for struggling UK gym operator LA Fitness, with competition from trade buyers Pure Gym and Fitness First.

In addition to US firm CCMP, the owners of Pure Gym, there have been more than eight PE and VC investments in the sector across Europe since June 2014.

Most recently, NorthEdge invested £11.5m in British gym chain Total Fitness, while BGF topped up an initial £2m investment in Xercise4Less with a further £5m in January.

Encore also picked up two upmarket health club operators in quick succession late last year, acquiring Third Space and 37 Degrees in October and November, respectively.

Company
Established in 2005, Fitness World operates 152 health clubs in Denmark, catering to 450,000 members. In addition, the company runs five clubs in Poland.

Fitness World employs 3,000 staff and generates revenues of DKK 1.1bn - which translates to a 45% market share in Denmark, according to FSN. The GP added that the business has experienced sales and EBITDA compound annual growth of 29% and 25% over the last five years, respectively.

People
Thomas Broe-Andersen led the deal for FSN Capital.

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• Topics
• Nordics
• Consumer
• Buyouts
• FSN Capital