Latest News

Back to Latest News back

 

Ardent Leisure sells Goodlife​ Health Clubs in $260 million deal

Ardent Leisure sells Goodlife​ Health Clubs in $260 million deal
August 19, 2016

Multi-sector leisure operator Ardent Leisure has reportedly agreed a $260 million deal to sell its Goodlife Health Clubs division to private equity firm Quadrant.

Having been undertaking a strategic review of fitness clubs division over recent months, the results of which had been expected to be announced in the coming days, the sale follows Quadrant having signed off on a new investment fund, which raised $980 millon

In acquiring the Goodlife brand, one of Ardent’s top performing divisions over recent years, Quadrant will reportedly now focus on expanding its Sydney network of clubs.

According to the Australian Financial Review, Quadrant Executive Chairman Chris Hadley plans to spend an additional $100 million on growing the Goodlife business, and said he was expecting the $2 billion national gym sector to grow at 6%  a year for the next five years.

Hadley told the Australian Financial Review “in Australia right now there's approximately 3.5 million gym members comprising a participation rate of 14% of the population.

"In addition to population growth there is also the potential for an increase in the participation rate which is higher in some other countries such as the United States (where it is) at around 20%."

Operating 76 clubs around the country and with more than 200,000 members, Hadley sees the competitive Sydney market as representing a gap in the network with just four clubs.

Quadrant has set up a holding company Fitness and Lifestyle Group to purchase Goodlife and to make other acquisitions in the sector.

Hadley will chair the company and Jonathon Pearce who led the deal will also be a director.

With Fitness First’s global club network up for sale and reportedly ready to be broken up, Sydney-focused Fitness First Australia.

Hadley stated "we will probably have a look at it if and when it comes up for sale.”

For Ardent, which, since March, had been looking to sell its d'Albora Marinas division, the sale will require much-needed funds for investment in other parts of its business.

Ardent Leisure Chief Executive Deborah Thomas also conceded that the Goodlife brand would have required much greater investment to build the scale required to compete in the sector.

As a result, Thomas explained "our focus is better directed towards other areas”, adding “it was important for us to find a buyer that was comfortable with the values and culture of the health club division.”

Ardent Leisure will deliver its full-year results on 24th August. Earlier this week, Goodlife announced a $2.5 million refurbishment of its Ashgrove, Brisbane club.

Lower image shows Goodlife Glen Iris.

17th August 2016 - GOODLIFE HEALTH CLUBS TO INVEST $2.5 MILLION TO REDEVELOP ASHGROVE FACILITY

12th August 2016 - GOLD COAST TOURISM RESURGENCE SUGGESTS POSITIVE OUTLOOK FOR ARDENT LEISURE BUSINESSES

10th August 2016 - LIKELY FITNESS FIRST BREAK-UP TO INCLUDE SALE OF ASIAN AND AUSTRALIAN GYMS

25th April 2016 - GOODLIFE HEALTH CLUBS OPENS MELBOURNE DOCKLANDS CLUB AS ARDENT LEISURE UNDERTAKES REVIEW OF GYMS

31st March 2016 - ARDENT LEISURE LOOKS TO SELL MARINAS DIVISION

23rd February 2015 - AUSTRALIAN GYM MARKET TO REACH SATURATION WITHIN FIVE YEARS

13th August 2014 - ARDENT LEISURE BUYS INTO HYPOXI WEIGHT MANAGEMENT CONCEPT


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Clubware

Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…

read more

Access / Billing / Fitness / Recreation

 
 

IEDM

iEDM integrate Design, Engineering and Delivery Management services to convert existing spaces into exciting new entertainment venues. Our team consists of highly qualified professionals with diverse…

read more

Consultants / Design

 
 

Neptune Benson

Neptune Benson is a manufacturer of high quality water filtration and disinfection products for the recreational, industrial, and municipal water markets. With more than 20,000 installations…

read more

Aquatics / Design / Recreation

 
 

VLOCKER

Vlocker Pty Ltd has been designing, manufacturing, installing and servicing locker systems worldwide since 1995. Vlocker specialises in providing locker solutions to suit client requirements in…

read more

Aquatics / Attractions / Safety / Security / Venues

 
 

CERAMIC SOLUTIONS

Established in 1994, Ceramic Solutions has excelled at the supply and installation of swimming pool tiles and equipment for the pool and leisure industry, with a focus on the needs of end-users. …

read more

Aquatics / Design / Surfaces / Venues

 
 
 

Jonas Leisure

JonasLeisure offers a complete range of leading leisure and recreation software brands – envibe, Centaman, Gladstone Health & Leisure, The Retention People, Nutrition Complete and…

read more

Aquatics / Billing / Fitness / Recreation / Sport

 
 

Aussie Strength

We are Aussie Strength. The ultimate supplier for Commercial Gym Equipment that's built to deliver in the toughest environments. From USA-Built hardcore weight training equipment from Arsenal…

read more

Fitness / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business