International legal practice Osborne Clarke has advised the management team of leading Portuguese low-cost gym business, Fitness Hut S.A. (“Fitness Hut”), on its buyout by Viva Gym (“Viva”), a leading Spanish low-cost gym business, in a deal led by specialist sustainable and impact investor Bridges Fund Management (“Bridges”).
This acquisition creates the biggest low-cost fitness group in the Iberian region, with 200,000 members across 48 sites, combined revenues of over €50m, and ambitious growth plans for the next few years. The current Fitness Hut management team reinvested in the new combined business and will continue to lead and grow the Portuguese business.
The health and fitness sector continues to thrive in both Spain and Portugal, and the low-cost segment is the fastest-growing part of those markets. Together, the combined group – which will be led by Viva CEO Juan del Río Nieto and will continue to operate under two separate brands – currently operates 48 sites. With the new facilities in place, management now expects to add another 14 gyms in 2018, with a target of over 90 sites across the group by the end of 2020.
Osborne Clarke has a strong presence in the UK private equity market and this latest deal is one of a number of successful transactions the team has worked on in the health and fitness sector, including advising management on the sale of LA Fitness in 2015.