FountainVest, OTPP back Hong Kong’s Pure Group

Financial terms weren’t disclosed but Bloomberg reported in November that FountainVest was in advanced talks to buy control of the company at a valuation of more than $400 million. Colin Grant, co-founder and a shareholder in Pure, will remain as CEO. Hong Kong billionaire Bruce Rockowitz will also continue to hold shares in the company. 

Founded in 2002, Pure operates 29 Pure Yoga and Pure Fitness centers in Hong Kong, Shanghai, Singapore, Taipei and New York. Most of these facilities are located in premium Hong Kong office buildings, but the company's planned openings for 2018 will develop its presence in the Kowloon and New Territories areas, as well as in mainland China.

In addition to yoga and fitness, Pure sells activewear and organic foods in its training centers under the Pure Apparel and Nood Food brands. The company has more than 80,000 customers and 1,900 employees.

“We are convinced that the market for health and wellness in Asia will continue to grow in the years ahead especially in emerging markets such as China, and Pure is in a prime position to capitalize on this amazing opportunity,” Frank Tang, CEO and managing partner of FountainVest, said in a statement.

FountainVest is deploying its third China-focused fund, which closed at the hard cap of $2.1 billion in September last year. OTPP has been an anchor investor in each of its funds.

Other recent PE activity in the fitness center space includes the merger of the Hong Kong and Southeast Asia business of Fitness First and Southeast Asia-based Celebrity Fitness. Navis Capital Partners, previously the owner of Celebrity Fitness now holds a majority stake in the combined entity. Oaktree Capital Management holds a minority interest.

That deal came about as Oaktree, which assumed control of Fitness First globally in 2012, began to break up the Asia business. Quadrant Private Equity acquired the company's Australia assets.

Separately, CDIB Capital took a minority stake in Taiwan-based fitness center chain operator World Gym, with a view to expanding into China and other Asian markets.

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• Topics
• Greater China
• Consumer
• Buyouts
• China
• Hong Kong (China)
• Fountainvest Partners
• OTPP