AusLeisure

Fast growing fitness operator Viva Leisure is to further expand its entry into the Queensland market with the announcement that it has executed a binding sale and purchase agreement for two Healthworks Fitness Centres in the south east Queensland suburbs of Cleveland and Victoria Point.

The acquisition sees Viva Leisure expand its presence in the Queensland market and comes less than a month after Viva Leisure announced its previous acquisition of eight Healthworks locations.

The acquisition price represents a headline multiple of 2.50 times normalised earnings in the last financial year before interest, taxes, depreciation, and amortisation (EBITDA), before synergies and will contribute approximately $250,000 in EBITDA on a full-year run-rate pre-synergies.

Completion is expected to occur within the next 30 days and will add approximately 2,500 new members to Viva Leisure’s growing portfolio.

Commenting on this latest acquisition, Harry Konstantinou, Viva Leisure's Chief Executive and Managing Director of Viva Leisure, advised "expanding on our previously announced Queensland acquisition means Viva will be one of the largest club owners in the Queensland market with 10 owned locations at the completion of the acquisition.

“We continue to be excited about the Queensland market and the opportunities available for further acquisitions and greenfield locations. We confirm our previous guidance that we expect to be operating over 15 locations in Queensland within the next 12 months.”

Since its floatation in June this year, Viva Leisure has been the fifth best performing IPO of the year.

Viva Leisure currently has 45 locations operating, with a further five locations (four in the ACT and two in NSW) to open in December 2019, and with the 10 acquired Queensland locations (via the two separately announced acquisitions), will see it operating in 60 locations by the end of the 2019/20 financial year, with a further 12 locations in the pipeline.

This will represent a 50% increase in the number of clubs operating since 30 June 2019, equivalent to a new location opening on average every 1.3 weeks.

Image courtesy of Healthworks.

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