Apollo Acquires Stake in GoodLife Fitness at C$2B Value

Apollo Takes Minority Stake in Canada's GoodLife Group

Investment firm Apollo is acquiring a minority stake in The GoodLife Group, Canada's largest fitness club operator. The transaction marks the first time the fitness chain has accepted outside equity capital since its founding in 1979.

The deal values GoodLife at approximately C$2 billion, equivalent to $1.46 billion. Founder David 'Patch' Patchell-Evans will continue to serve as chairman and remain an investor in the company.

Deal Overview and Market Context

The investment is being made through funds and affiliates associated with Apollo's hybrid strategies. This new capital is intended to help GoodLife accelerate its long-term growth strategy and strengthen its leadership position in the Canadian fitness market.

Based in London, Ontario, GoodLife operates over 400 clubs with around 1.5 million members across its brands, including GoodLife Fitness and Fit4Less. This move aligns with a broader trend of private equity investment in the fitness industry, following recent acquisitions like Crunch Fitness and EōS Fitness in the U.S.

Impact on the Fitness Industry

Apollo's investment is expected to provide GoodLife with the necessary resources to expand its services and market reach. For the wider fitness sector, this deal underscores the strong investor confidence in the gym industry's potential for sustained growth.

The transaction highlights the appeal of established, founder-led companies to large investment firms seeking stable returns. Apollo, which manages approximately $908 billion in assets, utilizes a hybrid strategy to provide flexible debt and equity capital solutions to companies like GoodLife.

Summary

This strategic investment by Apollo provides The GoodLife Group with significant capital to fuel its next chapter of growth while maintaining its foundational leadership. The deal reinforces a continuing trend of private equity acquisitions within the fitness sector, signaling a positive outlook for the industry's future.

FAQ

Q: Who is investing in The GoodLife Group?
A: Investment firm Apollo is acquiring a minority stake through its hybrid strategies funds.

Q: What is the valuation of The GoodLife Group in this deal?
A: The deal values the Canadian fitness company at approximately C$2 billion ($1.46 billion).

Q: Will the founder of GoodLife remain with the company?
A: Yes, founder David 'Patch' Patchell-Evans will remain chairman and an investor in the company.

Source: Investing.com