John Treharne, CEO of The Gym Group
The 24-hour gym chain is bulking up its portfolio after acquiring 18 new gyms from Lifestyle Fitness.
The deal worth £20.5m has seen The Gym Group increase its portfolio from 98 to 116 gyms across the UK.
TGG has grown rapidly since the opening of its first site in Hounslow in 2008 and has become the second largest player in the low-cost gym market.
It now expects to open a further 20 new sites under its organic rollout programme in 2017, having opened 15 new sites in 2016 and 19 new sites in 2015.
The group, as part of its stated strategy, has also sought to identify bolt-on acquisitions as a way of accelerating its rollout.
John Treharne, CEO of The Gym Group, said: "Lifestyle is an excellent and complementary fit with our existing estate. These are well invested gyms in strong locations with an established membership.
“The acquisition strengthens The Gym Group's position in the Midlands and North in areas where we are currently underrepresented and accelerates our expansion plan. The addition of these gyms is anticipated to be significantly earnings enhancing by 2019."
10 of the sites will be converted to The Gym brand immediately with the other eight sites operating under the Lifestyle Fitness brand.
The latter will be considered for conversion to The Gym brand in due course.
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