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Viva Leisure to acquire six Pinnacle Health Clubs in Victoria

Viva Leisure to acquire six Pinnacle Health Clubs in Victoria
January 11, 2021

Viva Leisure’s ongoing expansion has seen it announce that it is to acquire six Pinnacle Health Clubs located in Victoria for a sum of between $6.05 million and $6.25 million.

Strengthening the ASX listed company’s reach in Victoria, the acquisition, which delivers in excess of 6,500 members is in line with Viva Leisure’s stated strategy of expansion. The company’s presence will now increase from eight to 14 clubs in Victoria.

Seen as complementing Viva Leisure’s existing locations, the six site to be acquired - Caribbean Park, Mulgrave, Oakleigh, Parkdale, Scoresby and Upwey - already operating in a ‘hub and spoke configuration’.

The transaction will be funded using 50% debt and 50% equity from recent capital raising, with the price representing a multiple of three time the normalised EBITDA for five clubs during the 2019 financial year, plus a reimbursement of capital costs and equipment for a recently opened sixth location.

Pinnacle recorded revenue of $7.5 million in the 2019 financial year and COVID-19 impacted revenue of $5.8 million in the last financial year.

Advising that the acquisition delivers multiple synergies, Viva Leisure Chief Executive and Managing Director, Harry Konstantinou stated “the acquisition of Pinnacle Health Clubs expands on and continues to cement Viva Leisure’s position as a leading and fast-growing health club owner and operator in the Australian market.

“In addition, the acquisition will strengthen and double Viva Leisure’s Victorian metropolitan presence and will provide further synergies such as marketing.

“The Pinnacle business is a highly complementary business to Viva Leisure, and provides attractive membership options which could be rolled out through the rest of the Viva Leisure network.”

The acquisition is expected to be completed within the next 60 days.

Viva Leisure has released a video promoting its Club Lime brand.

Image: Pinnacle Health Clubs Oakleigh.

Note: EBITDA is Earnings before interest, tax, depreciation and amortisation.

Related Articles

2nd December 2020 - Australian Institute of Fitness predicts top industry trends for 2021

27th November 2020 - Viva Leisure looks to drive growth with $30 million capital raising

16th November 2020 - Viva Leisure continues expansion with 91st facility opening and record membership numbers

26th August 2020 - Viva Leisure announces ‘outstanding’ financial results with no loss in year-on-year income

14th August 2020 - ISPO identifies health orientation as key fitness trend in post Coronavirus-world

22nd July 2020 - Viva Leisure acquires Plus Fitness’ master franchisor for $20 million

15th June 2020 - New Queensland retail centre to feature Viva Leisure brands

25th May 2020 - Viva Leisure prepares for gym reopenings

26th March 2020 - Viva Leisure sheds more than 1,000 staff in 48 hours

2nd March 2020 - Viva Leisure reports ongoing growth and reveals new boutique brand

14th February 2020 - Viva Leisure opens new sites and completes Fit n Fast Health Clubs acquisition

17th December 2019 - Further growth for Viva Leisure with enhanced keyless club entry and launch of dedicated DAB+ radio station

2nd December 2019 - Viva Leisure looks to raise new capital as it announces acquisition of 13 Fit n Fast clubs

12th November 2019 - Viva Leisure expands Queensland operations with addition of two more Healthworks clubs

16th October 2019 - Viva Leisure enters Queensland market with acquisition of eight Healthworks Fitness Centres

28th August 2019 - Viva Leisure 2018/19 financial results exceed prospectus forecasts

8th August 2019 - Viva Leisure launches new app to offer keyless entry into clubs

25th July 2019 - Canberra’s Project Fitness Group to transition to HIIT Republic brand as it joins Viva Leisure stable

22nd July 2019 - Viva Leisure follows ASX listing with acquisition of Fitness 24/7 clubs

8th June 2019 - Investors welcome Viva Leisure’s ASX listing


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