NBC Capital sells Fenix Fitness Clubs for $64m

The purchase price is equal to 4.7x the company's forecast EBITDA for 2013.

Fenix owns and operates 10 fitness clubs in Victoria and Queensland, with a further two clubs under development, and has around 35,800 members.

Brisbane-based NBC acquired Fenix via a management buyout through Private Equity Fund III in August 2008. The initial investment consisted of four fitness clubs.

This latest move to consolidate Australia's health and fitness sector comes after Fitness First recently put 24 of its clubs in the country up for sale as part of a restructure of its UK parent company. The chain, which is owned by British private equity firm BC Partners, was exploring the possibility of launching an IPO in Singapore last year, but called off the plans in order to engage in talks with several buyout suitors instead.

Earlier this year, BC axed the core management team of Fitness First in a bid to prevent the company sinking under the weight of its high-interest loans. The PE owner appointed Chris Stone as chief executive following his successful turnaround of KKR-backed Northgate Information Solutions, while the CFO and UK head were also replaced.

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• Topics
• Australasia
• Consumer
• Exits
• Trade sale
• Australia
• Consumer