PureGym clinches deal for Blink Fitness gyms in New York and New Jersey, edging out a reported last-minute bid from gym giant Planet Fitness as competition heats up in the affordable gym market
The United States Bankruptcy Court for the District of Delaware has given Blink Fitness the green light to offload its corporate operations and New York and New Jersey locations to PureGym, one of the U.K.’s leading fitness operators, in a $121 million cash deal.
The court also approved the sale of Blink’s Chicago, Houston, and California gyms to an affiliate of JTRE Holdings LLC, although the agreement doesn’t include Blink’s franchised locations. Both deals are expected to close later this year.
“We are pleased to have reached another milestone in our sale process, and look forward to emerging an even stronger business, under new ownership that believes in the value of our mission,” Blink Fitness president and CEO Guy Harkless said. “We are excited to continue our work to position the business and various gyms for long-term success as we remain focused on providing members with an inclusive, community-focused gym experience. I’d like to reiterate my thanks to each member of Blink Nation, who go the extra mile every day, providing members with an elevated gym experience.”
The Blink Fitness deal gives PureGym an edge at a time when demand for affordable gyms has intensified, especially among young fitness consumers looking for flexible hours and classes. Of particular note, high-value, low-price gym giant Planet Fitness reportedly submitted a last-minute bid for Blink Fitness after its initial offer was rejected due to antitrust concerns.
Since its 2009 launch, PureGym has grown to 600+ gyms, roughly 2 million members and already has a presence in the U.S. with three locations under the Pure Fitness brand. PureGym also operates corporate-owned locations in the U.K., Denmark, and Switzerland, as well as 20 sites under a franchise partner in Saudi Arabia and the UAE.
PureGym CEO Humphrey Cobbold noted that the fitness operator is looking forward to working with Blink Fitness to deliver a “fantastic fitness experience” for members.
“It is also the right moment to pay tribute to the PureGym team who have been involved in our acquisition of Blink Fitness,” he added. “In getting to this point our team has worked tirelessly over the last few months, with great professionalism and dedication, and I pay tribute to the role they have played in what is a transformational moment for PureGym in the USA.”
