CCMP- and Hermes-backed Pure Gym cancels IPO plans

In a statement the company said it had abandoned its plans due to market volatility and "challenging IPO market conditions".

The offering, which was announced in September, was anticipated to generate gross proceeds of £190m and present both CCMP and Hermes with the option to partially divest their stakes.

Pure Gym originally received institutional backing in 2010, when it was backed with a £6m investment from Magenta Partners in a £10m funding round. The company was then acquired by CCMP in May 2013 in a secondary buyout.

Under CCMP's tenure, the business has expanded its chain of low-cost gyms from 45 sites to 169. In May 2015, it bolted on competitor LA Fitness, which operated a chain of 43 gyms and focused specifically on London and the south east of England.

The company was on course to merge with Phoenix Equity Partners- and Bridges Ventures-backed The Gym Group in 2014. However, the proposal was abandoned after an investigation by the Competition and Markets Authority raised concerns over the impact on gym membership costs and quality of service.

In its most recent financial year, Pure Gym generated a turnover of £125.2m, with adjusted EBITDA of £28m.

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• Topics
• Exits
• UK / Ireland
• Consumer
• United Kingdom
• IPO
• Hermes GPE