Ardent Leisure acquires Fitness First Western Australian portfolio
The transaction aims to consolidate Goodlife Health Clubs position as a leading health club chain in Australia
Ardent Leisure has signed a binding agreement to acquire Fitness First's Western Australian health clubs for total consideration of AUD 32.5 million. This equates to approximately 5.3x the target's 2014 pro forma EBITDA. Fitness First Western Australia comprises eight health clubs in Perth with 21,243 members. This values every member at about AUD 1,530. Goodlife had already acquired six Fitness First and ten Fenix Fitness Clubs in 2013. At that time, an EBITDA multiple of 4.7x and a price per member of nearly AUD 1,692 were paid for the Fenix Fitness clubs, while each acquired Fitness First member was only valued at about AUD 413.
The clubs of Fitness First Western Australia, which are subject to the current transaction, have an average size of 2,161 square metres, which is approximately 13% larger than Goodlife's average. Consequently, Goodlife will be the leading health and fitness provider in Western Australia with its 40,000 members in 14 clubs in the state. Goodlife, which was founded in 2002, will then provide training facilities to almost 200,000 members in total.
Ardent Leisure is one of Australia's owners and operators of premium leisure assets including theme parks, bowling and other attractions. Ardent Leisure Group Chairman Neil Balnaves said, "The acquisition represents a strategic opportunity to strengthen Goodlife's penetration of the Australian health club market. In addition to the opportunity to grow these clubs under Goodlife management, the combination is expected to positively impact the performance of the existing club portfolio through enhanced passport benefits for existing Goodlife members including access to two Perth central business disctrict locations."
Source: Ardent Leisure
Picture: Goodlife Health Club