Coffer Corporate Leisure advises LA fitness on sale of three clubs
September 18, 2009
Coffer Corporate Leisure is pleased to announce it has advised LA fitness, one of the UKs largest private health and fitness operators, on the sale of three clubs to start-up company NuYuu Ltd, a value health and fitness operation backed by private equity house Hamilton Bradshaw.
The private equity vehicle, founded by BBC2s Dragons Den star James Caan, has backed an experienced management team and intends to grow the business steadily once the acquired clubs in East Grinstead, Sussex; Livingstone, Scotland; and Slough, Berkshire have established themselves with the new business model.
Whilst the terms of the transaction between LA fitness and Hamilton Bradshaw will remain undisclosed the sale of the above clubs involves the transfer of circa 4,500 members.
Mark Sheehan, Managing Director of Coffer Corporate Leisure, commented: The sale of these clubs represents a great deal for both parties. It gives the NuYuu team an established membership base from which to grow and allows LA fitness to exit three locations which do not fit with their longer term model. We are seeing value propositions succeed in all sectors; in the United States value health and fitness brands are very successful and there is no reason why well run propositions in the UK shouldnt be able to operate successfully in locations with a large enough catchment.
Martin Long, Chief Executive Officer of LA fitness, said: LA fitness has a clear strategy to create a more consistent and compelling brand offering for its members. After reviewing our current mix of clubs we identified a number of clubs which did not fit our model moving forward and have therefore agreed to sell these clubs. Every multi-site business both acquires and sells sites on an ongoing basis to maximise the strength of its operation, LA fitness is no different in this regard.