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read moreASX-listed Viva Leisure has today advised that it has made a strategic investment in Boutique Fitness Studios (BFS), the master franchisee of Xponential Fitness-owned brands Club Pilates, Rumble Boxing, StretchLab and CycleBar in Australia and New Zealand.
Revealing a binding agreement for the $2 million acquisition of a 34% interest in BFS (replacing existing shareholders and becoming the largest single shareholder), the deal gives Viva Leisure a call option to acquire the rest of BFS’ shareholding for a price of $5.8 million plus a potential earn-out based on net studios opened and sold.
The investment and potential complete acquisition, which further diversifies the Viva Leisure and business, will also see the group’s technology - including Viva Pay and The Hub - implemented across the BFS network in the future.
Viva Leisure also sees an opportunity for the inclusion of the BFS brands into the Viva Pass product that is currently under development and will be launched in H2-FY2025.
Explaining the strategic investment in the fast-growing franchise business, Harry Konstantinou, Chief Executive and Managing Director of Viva Leisure Limited, advised “the investment into BFS expands Viva's network to over 400 locations across multiple disciplines and brands, enhancing our diverse offering while simultaneously introducing a new market for Viva Pay and other Viva technologies.”
Welcoming the deal, International, Xponential Fitness President, Bob Kaufman stated “we are excited to see Boutique Fitness Studios take the next step in its evolution by joining forces with Viva Leisure.
“The Australian market is an important strategic region for Xponential's brands, and we look forward to seeing this drive further growth for Club Pilates, StretchLab, Rumble Boxing and CycleBar.”
BFS Chief Executive, Matt Gordin added “I couldn’t be happier to partner with Australia’s fastest growing and most diverse fitness group.
"This partnership will allow us to continue to grow our team to support our franchisees. The synergies and platform that Viva brings will help drive our brands forward and our studios to grow stronger and more profitable.”
BFS, which landed the rights to become the Master Franchisee in Australia and New Zealand for Club Pilates, StretchLab, Rumble Boxing and CycleBar in 2019, currently has 48 studios open, with 106 licences sold across all four brands, with an additional 25 studios are expected to open over the next 12 months.
In addition, the BFS network is expected to generate system-wide sales of approximately $25 million per annum over the next 12 months.
Eager to help further expand the BFS portfolio of brands, Konstantinou went on to say “we look forward to working with BFS founder and CEO Matt Gordin and his team, and the wider Xponential Fitness team to grow the brands in Australia and New Zealand.”
The acquisition is consistent with Viva’s focus on replicating its successful growth strategies across all segments of the fitness market and has been fully funded with existing cash and banking facilities
As part of the investment, Viva Leisure has secured a position on the BFS Board.
Images: Club Pilates (top), CycleBar (middle) and StretchLab (below). Credit: iXponential Fitness.
6th September 2024 - Agenda released for 2024 AusFitness Industry Trade Show and Summit
4th September 2024 - Study shows Australian fitness operators need to improve membership inquiry handling
14th August 2024 - Viva Leisure reports 15.9% growth in annual income
9th August 2024 - Completion of Western Australian acquisitions sees Viva Leisure network expand to 361 locations
24th June 2024 - Viva Leisure opens Club Lime Rosebery and grows network across all brands to 342 locations
6th June 2024 - Viva Leisure launches $16 million equity raising to fund new acquisitions
22nd May 2024 - Viva Leisure advises of completion of Viva Pay across the Plus Fitness network
8th April 2024 - Viva Leisure enters Northern Territory fitness market with acquisition of four iFitness 24/7 gyms
16th February 2024 - Revenue growth prompts Viva Leisure to look for further fitness club acquisitions
16th January 2024 - Viva Leisure passes 20 years since opening of first Club Lime
8th January 2024 - Xponential Fitness looks at Japan expansion with master franchise agreement for Pure Barre and YogaSix
12th December 2023 - Viva Leisure continues growth with new gym and studio openings
29th September 2023 - Viva Leisure annual report charts ‘remarkable journey’
11th August 2023 - Viva Leisure reveals ‘robust’ full year results with 55% rise in revenue
17th July 2023 - Viva Leisure reports 55.4% revenue rise over last financial year
8th July 2023 - Xponential Fitness responds to critical report
7th July 2023 - Rumble Boxing master franchisor announces rollout plan for Australian studios
25th May 2023 - Viva Leisure’s Rebalance updates brand identity, digital appearance and in-studio experience
3rd May 2023 - 2023 Entrepreneur lists sees Xponential Fitness make a strong showing
26th April 2023 - Xponential Fitness agrees StretchLab Master Franchise Agreement for Japan
3rd April 2023 - Xponential Fitness reports 58% increase in revenue for 2022
6th December 2022 - Xponential Fitness announces Japanese master franchise agreement for Rumble and AKT brands
31st October 2022 - Club Pilates sets a goal of 100 studios across Australia and New Zealand
2nd August 2022 - Xponential Fitness signs master franchise agreement for CycleBar to operate in Japan
4th May 2022 - Club Pilates announces New Zealand expansion
6th January 2022 - Boutique Fitness Studios appoints Jacinta McDonell to Board of Directors
4th December 2021 - Australian master franchisee to launch Xponential Fitness brands in New Zealand
25th November 2021 - Club Pilates expands franchised studio network across Australia
15th October 2021 - Body Fit Training to expand in the USA with $60 million intellectual property sale to Xponential Fitness
2nd May 2021 - Xponential Fitness’ StretchLab signs master franchise agreement for Australian studios
29th July 2020 - Xponential’s CycleBar brand arrives in Australia with plans for 45 studios
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