M&A News: Planet Fitness (NYSE:PLNT) Will Not Buy Blink Holdings – TipRanks.com

Just a week ago, we heard about fitness chain Planet Fitness (PLNT) and its last-minute bid to buy up Blink Holdings, giving it access to a range of luxury gyms in the United States and beyond. That bid, however, was not to be. And investors took it surprisingly well, sending shares up nearly 2% in Wednesday afternoon’s trading.

Planet Fitness, noted a CNBC report, swung in at the last minute, getting in on a 48-hour “challenge window” in a bid to land the former chain’s holdings from bankruptcy court. But other offers came in, and the United Kingdom chain PureGym landed Blink’s operation instead.

The move now gives PureGym a much larger presence in the United States. Formerly, PureGym had just three locations in the United States, and its presence goes back to 2021. Now, PureGym will have 60 Blink locations, mostly found in New Jersey and New York, to add to its roster.

Beating the Antitrust Concerns

A Wall Street Journal report suggests that PureGym stepping in to take over Blink’s locations should pass regulatory muster rather smoothly. The bankruptcy judge in the case, J. Kate Stickles, noted that PureGym’s offer not only could more readily address antitrust concerns but would also let Blink continue to operate through the winter months, the busiest time of year for Blink.

While Planet Fitness’ bid was higher—up to $34 million higher, the report noted—there were potential concerns from regulators stepping in.

Is Planet Fitness Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on PLNT stock based on 10 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 47.67% rally in its share price over the past year, the average PLNT price target of $102.77 per share implies 6.46% upside potential.

See more PLNT analyst ratings

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