Group, the former Health & Fitness Nordic, is building up its Scandinavian business with the projected acquisition of FitnessDK, the second-largest fitness club operator in Denmark.
The group of 41 fitness clubs divested by Parken Sport & Entertainment has been struggling to uphold its high-end concept and reported losses for several years.
Parken said the group would be acquired for 100 million Danish kroner (€13.4m) on a cash and debt-free basis, formally through an entity controlled by Altor Equity Partners and TryghedsGruppen, which together control Sats Group. The purchase price is to be paid in cash upon closing, which is anticipated to occur by the end of August.
FitnessDK’s turnover declined by 2.6% to DKK429.9 million (€57.7m) in 2017. Its number of members contracted by nearly 7% to 117,000 at the end of 2017, after the number of clubs fell by two to 45.
Formed from a tie-up between Sats, Elixia and Fresh Fitness in 2014, Sats Group is already the leading player in the Nordics, with about 200 clubs and over 560,000 members in Norway, Sweden and Finland. Its sales reached 3.25 billion Norwegian kroner (€340m) in 2017, with EBITDA of NOK465 million.
Health & Fitness Nordic already owned clubs under the Fresh Fitness brand in Denmark when it was formed in 2014, but the 22 Danish sites were divested later that year to Fitness World.
Olav Thorstad, Sats Group’s chief executive, explained this week that the group was ready to expand again after it streamlined its operations. “We are in a different shape now with stronger financial results and better concepts,” he said. “We see an opportunity to launch new concepts and drive the innovation in the Danish fitness market.”
Read the full story in FNE#59.
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