The Gym, a UK operator of low-cost gyms, has secured new investment from Phoenix Equity Partners, a UK middle-market private equity firm, to support its continued expansion.
Bridges Ventures, which has been an investor in The Gym since 2007, retains a substantial shareholding in the business and will also provide further funding. A total of GBP50m of new equity has been committed which will support the further growth of the business.
The Gym will continue to be led by chief executive John Treharne, who founded the business. The Gym currently has over 200,000 members and 36 gyms located across the UK.
The low-cost gym market is growing rapidly, with consumers increasingly seeking affordable access to high quality gyms. The new capital committed as part of this transaction will support an accelerated roll-out of new sites across the UK.
Treharne says: "We are excited about continuing to build The Gym Group, and welcome our new partner Phoenix alongside our existing partner, Bridges. This combination will allow us to fully capitalise on the opportunities in the rapidly growing low-cost gym sector.
“This investment further strengthens our balance sheet and covenant strength making us an even more attractive tenant for both our existing and prospective landlords.”
David Burns, a partner at Phoenix, says: "John and the management at The Gym have created a very successful model in this fast-growing sector and we look forward to investing further capital to help them take the business to the next level.”
Philip Newborough, managing partner and co-founder of Bridges Ventures, says: “Since the opening of the first site five years ago we have been working very closely with John and his team in building a business that has delivered on both its commercial and social impact goals. The company is now entering a new phase of development and we are delighted it has been able to raise the capital needed to fulfil its ambitious expansion plans.”
