Fitness First to IPO

The IPO could happen by the second quarter of 2011, according to reports. Executives at Fitness First could not elaborate on plans as the process is in its earliest stages. It has been confirmed that the British-based gym is looking to float on an exchange in Asia Pacific.

BC Partners acquired Fitness First in 2005 from European firm Cinven for $1.4 billion. Cinven had previously acquired Fitness first in 2003 for $721.5 million.

Much of that valuation growth is attributed to the gym group’s performance in Asia. Fitness First launched in Bournemouth, UK, in 1992 and has since largely expanded its focus to Asian markets, with gyms in Australia, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Fitness First claims to be “the largest gym, health and fitness club group in the world” with more than 1.5 million members with approximately 550 clubs worldwide, 140 of which are in Asia Pacific.

A source with knowledge of the deal told AVCJ that Asia and Australia account for approximately 65% of Fitness First’s operating profit, and said its potential in the region is a key consideration in floating the company on an Asian stock exchange.

While the source added that launching an IPO would not be commentary about the Eastward shift of economic power Asia sources said that the group could benefit from the large number of investors who interested in Asian IPOs. “If this company has an Asian story, that’s all the more appeal to local investors,” one source said.

Benson Wong, assurance partner of PricewaterhouseCoopers Hong Kong, explained of the rise in IPOs in Hong Kong in 2010, “Despite market volatility in the past few months affecting the timing and pricing of certain IPOs, investors are still interested in buying new stocks at a reasonable price. The deals that fared the best were the ones with market potential and reasonable prices.”

PwC recently issued its ‘IPO Market Interim Review and Outlook for 2010’, and found that retail, consumer goods and services made up 35% of all Hong Kong-based IPOs, or HK$115.5 billion ($14.8 billion) of the total HK$330 billion ($42.4 billion) raised. The listing would play to all of these positive trends.

Interestingly, the exit marks something of a departure for BC Partners, which focuses primarily in Europe. Its current investments are largely based in Western Europe, according to its website. Although it has offices in the US and Europe, it does not have an office in Asia.

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• Topics
• Exits
• Consumer
• Southeast Asia
• Greater China
• Buyout
• Cinven