Gymbox has secured a GBP39 million funding package to continue its expansion plans.
BGF (Business Growth Fund), an existing Gymbox shareholder, has provided an additional GBP13 million of equity finance while HSBC, which has banked the company for over 13 years, is providing a debt package totalling GBP26 million.
This latest round of funding brings BGF’s total investment to GBP25 million.
Gymbox will roll-out further new sites across London within the next 12 months. This includes its largest gym to date, which is under construction in Farringdon. The new 42,000 sq ft gym will feature a three lane running track, an Olympic sized boxing ring and the largest free weights area in the capital. More than 150 classes will be available every week, including Circus Fit, a combination of trapeze skills, aerial hoop and acrobatics.
Under the leadership of CEO and founder Richard Hilton, Gymbox has experienced consistent growth since opening its first gym in 2003 and in the last 12 months generated revenues and EBITDA of GBP16 million and GBP5.5 million respectively. The eight London based gyms have in excess of 22,000 members.
Following BGF’s initial investment in July 2014, the business has opened sites in Old Street, Westfield Stratford and Victoria and has almost doubled its EBITDA during this period.
Hilton says: “Gymbox continues to revolutionise the fitness industry by ensuring that working out is as much fun as going out. With this funding package and the ongoing support of my management team, BGF and HSBC, there is a lot more we can and want to do.”
Alistair Brew, an investor at BGF who has been a member of the Gymbox board since 2014, says: “Gymbox continues to go from strength to strength. We are delighted to be supporting the team with further investment as it continues its roll-out.”
The deal was led for BGF by Brew and Ben Kirby, who also led the original investment in Gymbox in July 2014.
Gymbox was advised by Ali Aneizi of Tamweel Capital, an investor in the business and corporate finance adviser to the company.
