M&A Deal Summary

Pure Gym Acquires LA Fitness International

On May 29, 2015, Pure Gym acquired consumer services company LA Fitness International from CIVC Partners, Northstar Capital, MidOcean Partners, Madison Dearborn Partners and Seidler Equity Partners

Acquisition Highlights
  • This is Pure Gym’s 1st transaction in the Consumer Services sector.
  • This is Pure Gym’s 1st transaction in the United States.
  • This is Pure Gym’s 1st transaction in California.

M&A Deal Summary

Date 2015-05-29
Target LA Fitness International
Sector Consumer Services
Buyer(s) Pure Gym
Sellers(s) CIVC Partners
Northstar Capital
MidOcean Partners
Madison Dearborn Partners
Seidler Equity Partners
Deal Type Add-on Acquisition
Advisor(s) Canaccord Genuity Corp. (Financial)

Target

LA Fitness International

Irvine, California, United States
LA Fitness is a operator of full-service fitness clubs and currently serves over 1,000,000 members in over 275 clubs from New York to California. Clubs range in size from 20,000 to 60,000 square feet and typically offer access to circuit training equipment, free weights, cardiovascular equipment, aerobics programs, swimming pools, whirlpools, saunas and steam rooms, as well as racquetball and basketball courts.

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Buyer(S) 1

Buyer

Pure Gym

Leeds, United Kingdom

Category Company
Founded 2009
Sector Consumer Services
Revenue 31M GBP (2012)
DESCRIPTION

Pure Gym is a large fitness club operator in U.K. Pure Gym offers its members convenience with 24/7/365 access at a significant value compared to traditional operators. Pure Gym was founded in 2009 and is headquartered in Leeds, United Kingdom.


DEAL STATS #
Overall 1 of 2
Sector (Consumer Services) 1 of 2
Type (Add-on Acquisition) 1 of 2
State (California) 1 of 1
Country (United States) 1 of 1
Year (2015) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-12 Fitness World A/S

Rødovre, Denmark

Formed in 2005, Fitness World A/S operates a chain of gyms with over 470,000 members and over 170+ centers around Denmark.

Buy -

Seller(S) 5

SELLER

CIVC Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1970
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

CIVC Partners is a private equity firm that provides buyout and growth capital to middle-market businesses located in the US and Canada. CIVC invests in companies generating sales of $40 - $300 million with an EBITDA of $5 to $25 million. Sectors of interest include Business Services, Information Services, Facility Services, Insurance Services, Transportation & Logistics, Tech-enabled Services, BPO, SaaS, Compliance Services, Corporate Training, IT Services, and Utility Services. The firm invests in the range of $20 - $100 million per transaction. CIVC prefers to be the lead equity sponsor and will consider both majority and minority investment situations. CIVC Partners was formed in 1970 and is based in Chicago, Illinois.


DEAL STATS #
Overall 35 of 48
Sector (Consumer Services) 1 of 1
Type (Add-on Acquisition) 10 of 14
State (California) 5 of 7
Country (United States) 35 of 47
Year (2015) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-13 Yellowstone Landscape

Plano, Texas, United States

Yellowstone Landscape is a provider of a variety of landscaping services to commercial, governmental and institutional customers located in the Southeastern United States and Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-01 Icon Identity Solutions

Elk Grove Village, Illinois, United States

Icon Identity Solutions, Inc. is a manufacturer of custom corporate branding and identity solutions encompassing all facets of exterior signage, repair and maintenance and renovation services for blue-chip customers across multiple end markets. Icon’s three manufacturing facilities and extensive network of installation and maintenance technicians allows the company to serve large, nationwide customers in a timely and consistent fashion. Icon’s products and services are provided across three business segments: branding services & products (manufacturing and installation of both exterior and select interior signage), repair & maintenance (preventative maintenance, on-call repair, lighting retrofits and related services for exterior signage and lighting) and remodel & renovation services (in-store renovation/remodel of a customer’s store locations, providing project management and oversight of specialized sub-contractors).

Sell -
SELLER

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 29 of 80
Sector (Consumer Services) 1 of 2
Type (Add-on Acquisition) 11 of 27
State (California) 2 of 4
Country (United States) 28 of 76
Year (2015) 3 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-13 A&D Environmental Services

High Point, North Carolina, United States

A&D Environmental Services, Inc. is a provider of environmental and industrial service industry providing a full range of industrial, remediation, waste management, transportation and emergency response services.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-06-30 Columbus Hydraulics

Columbus, Nebraska, United States

Columbus Hydraulics is a designer and manufacturer of custom-engineered hydraulic cylinders for industrial machinery. Columbus Hydraulics was founded in 1952 and is based in Columbus, Nebraska.

Buy -
SELLER

MidOcean Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2003
PE ASSETS 10.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

MidOcean Partners is a private equity firm focused on acquiring controlling interests in middle-market companies throughout North America. The Firm has a preference for consumer and business services sectors including automotive, food/beverage, retail, consumer products, information services, infrastructure services, training and more. MidOcean seeks opportunities valued between $150 and $750 million where it can commit $75 to $300 million. In addition to investing equity, MidOcean also looks to provide flexible credit solutions as well. MidOcean Partners was formed in 2003 and is based in New York, New York.


DEAL STATS #
Overall 21 of 36
Sector (Consumer Services) 2 of 2
Type (Add-on Acquisition) 9 of 18
State (California) 3 of 5
Country (United States) 17 of 31
Year (2015) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-20 Fairway Outdoor Advertising

Duncan, South Carolina, United States

Fairway Outdoor Advertising LLC was formerly known as Naegele Outdoor Advertising, Inc. is the fifth largest outdoor advertising company in the United States and one of the largest privately held companies in the industry.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-07-15 KidKraft

Dallas, Texas, United States

KidKraft is a global designer and marketer of branded innovative gifts, toys, play sets, furniture items, and juvenile products. KidKraft was founded in 1968 and is based in Dallas, Texas.

Buy -
SELLER

Madison Dearborn Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 28.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Madison Dearborn Partners (MDP) is a large private equity firm that targets buyouts of private or publicly held companies, divestitures of larger companies, recapitalizations of family-owned or closely-held companies, acquisition-oriented financings, and financings to fund internal growth. MDP's target investment size is $100 to $600 million in buyout oriented transactions and $100 to $400 million in growth capital commitments. Areas of interest include basic industries (natural resources, chemicals, energy and power, automotive, building products, food, metals and mining, refining, paper, packaging and forest products, and general manufacturing), as well as communications, consumer products/services, financial services, and healthcare. Madison Dearborn Partners was formed in 1992 and is based in Chicago, Illinois.


DEAL STATS #
Overall 52 of 74
Sector (Consumer Services) 1 of 2
Type (Add-on Acquisition) 21 of 34
State (California) 9 of 10
Country (United States) 48 of 66
Year (2015) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-27 Liquid Web

Lansing, Michigan, United States

Liquid Web provides complex web hosting and managed cloud services to more than 30,000 customers worldwide across five high-performance data centers in the U.S. and in Amsterdam. The company is known for its premier Heroic Support platform, which delivers highly technical customer support across its server and hosting products. Liquid Web was founded in 1997 and is based in Lansing, Michigan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-28 Performance Health

Warrenville, Illinois, United States

Performance Health is a multichannel branded supplier to the global rehabilitation, recovery and sports medicine markets. Its proprietary product portfolio consists of market leading health and wellness brands, including Biofreeze, TheraBand, Hygenic and Cramer. Performance Health was founded in 1918 and is based in Warrenville, Illinois.

Buy $715M
SELLER

Seidler Equity Partners

Marina del Rey, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 5.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Seidler Equity Partners is a mid-market private equity firm focused on partnering with business owners and management to help build market-leading companies. Seidler will consider funding growth financings, family business transitions, owner-operator recapitalizations, management buyouts, liquidity for estate planning, and traditional buyouts. Seidler looks to invest in businesses with a proven track record and opportunities for growth. Prospective companies typically have minimum revenue of $25 million and EBITDA between $5 and $50 million. Seidler is a generalist firm and will consider investments across a wide range of industries, including manufacturing, service, and distributors. Seidler Equity Partners was formed in 1999 and is based in Marina del Rey, California.


DEAL STATS #
Overall 17 of 23
Sector (Consumer Services) 1 of 1
Type (Add-on Acquisition) 5 of 6
State (California) 2 of 3
Country (United States) 17 of 23
Year (2015) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-17 Sportsman s Warehouse Holdings

West Jordan, Utah, United States

Sportsman's Warehouse Holdings is a national operator of outdoor sporting goods retail stores, specializing in hunting, fishing, camping, and other outdoor equipment. Sportsman's Warehouse Holdings was founded in 1986 and is based in West Jordan, Utah.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-10-22 M&R Companies

Roselle, Illinois, United States

M&R Companies is a manufacturer of screen printing equipment for textile and graphic applications, including printing presses, belt printing systems, graphics presses, dryers, cure systems, and pre/post press equipment. M&R Companies was founded in 1985 and is based in Roselle, Illinois.

Sell -