Quadrant Private Equity has agreed to acquire Fitness First Australia from hedge fund giant Oaktree Capital Management, in a deal signed yesterday (29 September).
The deal creates the largest fitness group in Australia, with 650,000 members and total revenues exceeding A$400m (£235m, US$304.4m, €272.2m).
Quadrant acquired low-cost gym operator Jetts Fitness last month, for a reported A$100m (£58.7m, US$76.1m, €68.1m), having purchased Goodlife Health Clubs from theme park operator Ardent Leisure in August for AU$260m (£152.7m, US$197.9m, €176.9m).
It has also acquired a fourth brand, Hypoxi – a non-invasive body shaping method.
Quadrant created holding company Fitness Lifestyle Group early this year in order to purchase Goodlife and to make other acquisitions in the sector. The portfolio now encompasses 224 company-owned gyms and 188 franchises, with the combined group headed up by Goodlife CEO Greg Oliver.
Oaktree will now become a shareholder in the group, alongside Quadrant and Jetts.
"By combining Fitness First Australia with our existing network of fitness and lifestyle brands across the country, we’ve built a very strong national portfolio of clubs," said Oliver. "In particular, the merger with Fitness First Australia helps us build our presence in New South Wales, where our group has historically been under-represented."
The Australian deal comes as final negotiations are entered for the sale of the UK portfolio, with the conclusion of the deal with DW Sports expected imminently.
