Planet Fitness, which is listed on the Nasdaq, is thought to be positioning for a takeover of European fitness chain Basic-Fit as the sector continues to consolidate.
Rumours about the move, which seem to originate from Belgian investment bank, KBC Securities, have caused Basic-Fit’s shares – which have not typically reflected the quality of its performance – to rise by almost 4 per cent on the Amsterdam stock exchange. Planet Fitness shares are also at a high for the year.
Founded in 1984 as HealthCity by founder CEO René Moos, the Basic-Fit rebrand came in 2013. The company has a market value of almost €1.7 billion, with more than 1,600 clubs in six European countries.
Basic-Fit is the fastest growing operator in Europe, with a consistently strong performance. In April, it announced it had increased its membership in the first quarter by 213,000 to 4.5 million, while revenue had risen by 17 per cent to €332 million. It is aiming for a turnover of between €1.375 billion and €1.425 billion this year.
In March Basic-Fit said it would slow the rate of new development in 2025 and 2026, to 100 new gyms a year, in order to reach a desired two-times leverage target. Shareholder returns were to be given via a €40 million share buy-back programme.
Franchise business Planet Fitness was founded in 1992 and has clubs in the US, Canada, Mexico, Panama, Dominican Republic and Australia. It had 2,741 locations at the end of Q1 this year, with 20.6 million members. First quarter year-on-year revenue was up by 11.5 per cent to US$276.7 million.
Planet Fitness opened its first European site last year, in Barcelona, as part of its strategic growth plan to expand its presence in Europe. It was a joint venture with a franchisee partner. It also signed a development deal with Castle Point Fitness for 25 clubs in New Zealand, but none have opened yet.
Planet has also been doing share-buybacks, with the board authorising US$500 million-worth, US$280 million of which happened in 2024.
It’s thought the deal would be for equity and cash with money potentially being raised by flipping owned-operated sites to franchises to fund the transaction.
Other European operators may also be in Planet Fitness’ sights as various private equity houses position for exit.
Liz Terry, editor of HCM, said: “The sector was surprised at Planet Fitness’s fairly quiet entry into Europe, which lacked dynamism.
“Perhaps this was all part of a larger plan, or alternatively, the experience of the Spanish launch convinced the board that an acquisition would be a far more straightforward way to create a strong footprint in Europe” she said.
“There’s clear evidence that banks are waking up to the opportunities in the sector,” said Terry. “We have a number already booked to attend the HCM Summit in October to meet operators, for example – so it seems we could be entering a phase of increased M&A activity in the market.”
link