CCMP sells Pure Gym to Leonard Green in £600m deal

The deal is scheduled to be completed at the end of November and will value Pure Gym at around £600m.

CCMP acquired a majority stake – in excess of 75% – in Pure Gym in May 2013, and claims that under its ownership Pure Gym's revenue has risen fivefold. Pure Gym notably acquired LA Fitness in 2015. The business was considering an IPO in 2016, but abandoned the plans due to weak investor enthusiasm.

LGP's most recent fund, Green Equity Investors VII, closed in 2016 with $9.6bn in committed capital.

Previous funding
Pure Gym previously received £6m in funding from Magenta Partners, which was reported to be part of a larger £10m funding round in 2010. Prior to this, Pure Gym's management invested £3.5m in the company alongside private investors in 2009.

Company
Established in 2008 in Yorkshire, Pure Gym is a UK-based gym operator providing low-cost fitness facilities. It has around 950,000 members and operates 189 sites. In 2016, the company generated EBITDA of £40.5m, up 67% on 2015, while its revenues increased 57% to £155m. At the end of last year it had around 700 employees.

People
Pure Gym – Humphrey Cobbold (chief executive).
Leonard Green & Partners – Kris Galashan (partner).
CCMP Capital – Tom Walker (managing director).

Advisers
Vendor – Ropes & Gray (legal); Jefferies (corporate finance); Harris Williams & Co (corporate finance).

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