The Gym Group’s John Treharne sees Pure Gym merger as catalyst for expansion
by Jak Phillips | 13 Feb 2014
John Treharne, chief executive of The Gym Group, will replicate his role for the new group
The Gym Group chief executive John Treharne believes the pending merger with former rival in the budget club sector Pure Gym has come at the perfect time for both companies to continue their expansion.
Tuesday’s announcement of the potential tie-up – subject to approval by the Office of Fair Trading (OFT) – came as no surprise to many in the industry, given the clear similarities between the two firms.
The new entity (as yet unnamed) would comprise of over 100 gyms across the UK. Treharne, who expects to maintain existing growth rates once all the pieces are in place, will be chief executive, while Pure Gym's Peter Roberts will be executive chairman.
“We want to continue expansion across the UK and will be looking to open in excess of 30 gyms per annum, pending regulatory approval. Research shows the UK market still has a lot of scope for growth – certainly compared to the US and Germany – so we hope to capitalise on that,” Treharne tells Leisure Opportunities.
“For now we have to wait for the OFT decision – which we expect by early April – so until that goes through it will be a case of business as usual for both companies, continuing to trade and expand as before.
“After the OFT decision, we’ll consult on joint branding for the new company. We’re very similar companies in terms of pricing, equipment, 24/7 opening hours and philosophy, so I don’t envision there being many integration issues.”
The two firms first began discussing the prospect of a merger last summer, according to The Gym Group chief, but feel now is the best time for the companies and their customers.
“The big winners from this merger will be our customers, who will soon be able to use any Pure Gym or The Gym Group site in the UK,” adds Treharne.
“The holy grail of the UK gym industry is retention, so by offering our customers multi-site use, we’ll be in a better position to cater for their needs.”
The new company will be a combination of the current Pure Gym – owned by CCMP Capital Advisors, LLC – and The Gym Group, owned by Phoenix Equity Partners and Bridges Ventures.
The Gym Group chief executive John Treharne believes the pending merger with former rival in the budget club sector Pure Gym has come at the perfect time for both companies to continue their expansion. Tuesday’s announcement of the potential tie-up – subject to approval by the Office of Fair Trading (OFT) – came as no surprise to many in the industry, given the clear similarities between the two firms. The
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