Large National Fitness Club Chain was acquired by Aerofit Health & Fitness
Transaction Description
Privately owned, centralized, multi-location, fitness club chain located in a rapid growth area of Texas was acquired by large national fitness club chain.
Transaction Details
Aerofit Health & Fitness
Large National Fitness Club Chain
Transaction Overview
Privately owned chain of 5 fitness clubs centralized in a growing community in Texas were acquired by a large national chain of fitness clubs. Other national chains of fitness clubs were in the same geography, but this private chain was the largest in the number of locations, amenities, membership, and offered full-service clubs along with 24hr smaller clubs. Buyer saw the opportunity to expand their national footprint and take over market share in the area by purchasing this private chain.
Challenges
National Buyer was interested in 4 of the 5 locations and did not want the 5th location. Valuation and Proforma became the main negotiating points. Valuing the Real Estate relative to the Business Earnings was a main focus.
Solutions
Deal consisted of the purchase of 100% of the member base contracts and 4 out of the 5 locations with a short-term operational lease of the 5th location to enable the members of that location to transfer to one of the other locations.
