CDIB Capital backs World Gym Taiwan

World Gym was founded in 1976 in California by US bodybuilders Joe Gold and Arnold Schwarzenegger - who subsequently established a film career and became governor of California. The company opened its first club in Taiwan in 2001 and it has grown to 46 outlets. The majority of the clubs are located in Taipei and New Taipei, the northern part of Taiwan, with over 250,000 members.  

Although the number of full-service fitness centers in Taiwan has tripled since 2012, the overall penetration rate of 2.5% is still low compared to 3.9% in developed Asian markets like Japan and 16% in the US, Australia and Europe, according to CDIB Capital. As such, the operator plans to double its number of clubs in Taiwan by 2019, while preparing for an IPO.

“They [CDIB Capital] bring the depth of knowledge and experience in capital markets as well as a network expanding into China and other Asian markets, which will prove helpful as we look beyond Taiwan,” said John Caraccio, president of World Gym Taiwan. The company owns the franchise and operating rights for the whole Greater China region including China, Hong Kong, and Macau.

Previous investment activity in the space includes the merger of the Hong Kong and Southeast Asia business of Fitness First, which is controlled by Oaktree Capital Management, and Celebrity Fitness, a Southeast Asia gym operator owned by Navis Capital Partners.

CDIB Capital is currently investing its debut Asia private equity fund, which closed at $405 million in 2015. Chinese outdoor sports retailer Tutwo and South Korean skincare product manufacturer L&P Cosmetics are among its most recent investments.

 

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• Topics
• Greater China
• Consumer
• Expansion
• Taiwan (China)
• Growth capital
• CDIB Capital