This article is from the Australian Property Journal archive
ARDENT Leisure Group has strengthened its health clubs portfolio with the $60.9 million acquisition of Fenix Fitness Clubs.
Fenix owns and operates 10 clubs in Victoria and Queensland, with approximately 35,773 members and has two additional Victorian clubs in development stage.
AAD chairman Neil Balnaves said the acquisition represents a strategic opportunity to strengthen the group’s Goodlife’s busines and is expected to positively impact the performance of the existing club portfolio through enhanced passport benefits.
“Goodlife has consistently delivered above market membership and profit growth and will now enjoy equal No. 1 ranking in Melbourne with 19 clubs, together with the two Fenix clubs under development. Following the recent acquisition of the Fitness First South Australian portfolio Goodlife is also now well placed to capitalise on a more extensive product offering in South Australia,” he added.
The acquisition is expected to deliver mid-single digit EPS accretion in first full 12 months.
The acquisition will be partly funded through a fully underwritten equity placement to qualified and sophisticated institutional investors to raise approximately $A50 million with a Share Purchase Plan, capped at $A20 million, to facilitate retail participation. New debt facilities have been arranged support the acquisition with SPP proceeds to be used to initially reduce debt and accelerate the Main Event growth strategy, subject to site selection.
Property Review
