PureGym to pay $105 million for the majority of Blink Fitness locations
Pinnacle Holdings, a subsidiary of PureGym Ltd., operator of more than 600 gyms in six countries, has announced it has an agreement to acquire the majority of the assets of Blink Fitness, which filed for Chapter 11 protection on Aug. 12.
The $105 million cash purchase price will give PureGym ownership of Blink gyms in New York and New Jersey, where most of its locations are concentrated. Blink is still exploring the sale of its locations in Texas, Illinois, and California.
The agreement is subject to court approval and gives PureGym “stalking horse bidder” status ahead of an auction scheduled to take place on Oct. 28.
“Since it was founded in 2009, PureGym has built market leadership in the United Kingdom and Denmark and established material businesses in other global markets,” said PureGym CEO Humphrey Cobbold. ”We have long admired Blink Fitness for the premium and affordable fitness experience that the team has delivered, and their commitment to helping members improve their life through fitness.”
Cobbold added that PureGym plans to invest more money into the Blink gyms for facility upgrades.
Blink president and CEO Guy Harkless expressed his confidence that Blink’s foundation as an affordable fitness brands would provide PureGym with a strong base to build upon.
“As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy and their belief in Blink’s mission to democratize fitness for all,” Harkless said.
Earlier this year, PureGym partnered with RCS Real Estate Advisors to drive the expansion of its Pure Fitness brand in North America.
“Our team is dedicated to helping PureGym secure prime locations and strategic assets that will drive their success as they expand and strengthen their position in the U.S. fitness market,” said Moe Puri, managing director of RCS.
PureGym, whose investors include Leonard Green & Partners and KKR, will acquire Blink’s corporate operations as well as a substantial portion of Blink’s locations.
