The Gym Group has bought 18 gyms from Lifestyle Fitness for £20.5m.
The company, which is the second largest player in the low-cost gym market, add to its 98-strong portfolio.
The deal is expected to complete on 29 September.
The company separately expects to open 20 new sites this year, having opened 15 in 2016 and 19 in 2015. The 18 sites generated EBITDA of £3.45m in 2016.
John Treharne, chief executive of The Gym Group, said: “Lifestyle is an excellent and complementary fit with our existing estate. These are well invested gyms in strong locations with an established membership. The acquisition strengthens the Gym Group’s position in the Midlands and North in areas where we are underrepresented and accelerates our expansion plan. The addition of these gyms is anticipated to be significantly earnings enhancing by 2019.”
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